The law was changed last year to make squatting in residential property punishable by up to six months in jail and fines of up to £5,000. The British Property Federation has argued that this risks pushing the problem on to businesses, and so has called on the government to amend the law so ensure that business premises are offered the same protection as homes.
Speaking at a British Property Federation seminar this morning, Mike Weatherley MP said:
“The recent change in the law for squatting in residential properties has brought a welcome relief to homeowners across the country. Unfortunately, though, for commercial property owners the problem has got worse, as squatters now specifically target non-residential buildings. This just goes to show why the law needs to be extended to cover commercial properties and I am pleased the Secretary of State for Justice, the Rt Hon Chris Grayling MP, is sympathetic to this cause”
Liz Peace, Chief Executive of the BPF said:
“It is important that the government doesn’t lose sight of the chronic shortage of housing that remains the root cause of the problems of homelessness and squatting. That said, we support a change in the law to give the same protection to commercial landlords as is given to homeowners. At present, businesses with an empty property not only have to pay full business rates, they also have to spend significant sums of money securing their premises, and in extreme cases may face lengthy and costly legal proceedings to evict squatters.”
This BPF seminar heard from a panel of experts who considered a range of potential problems attached to empty properties.
Professor Barry Gilbertson, RICS Past President, told delegates:
"By their very nature, empty properties are a problem – for their owners, for the streetscape and for those responsible for their care and appearance. Physical condition tends to deteriorate and capital value depreciates whilst the risks of vandalism and squatting accelerate.
Many high streets have more than one shop in five vacant, but of course there are also many industrial units, offices, pubs and, remarkably, homes left empty when their occupiers go out of business or fail to pay their mortgage arrears."
Bill Gloyn, Chairman of the BPF insurance Committee and Partner European Real Estate of JLT Specialty said:
“The growing problem of vacant properties is one that affects both property owners and tenants who still have responsibility for premises that they have vacated. In the current economic climate, it is an issue can only be expected to get worse. Insurers are getting more demanding about the requirements that they want to impose - both to reduce the risk of damage and of subsequent business losses. Insurance cover is also being restricted - sometimes leading to contractual obligations to tenants and funders to be breached”
Bryan Johnston, Senior Associate, Clifford Chance LLP said:
"No landlord wants to hold empty property for any length of time. However, landlords will want to ensure that any vacant properties they have remain empty of unwelcome occupiers. Security is therefore a key concern, but other issues, such as insurance, liabilities and impact on rents are of fundamental importance when a landlord has to deal with empty properties."
John Mills, Director, Camelot Property Management, whose organisationoffer protection for Landlords with empty properties said:
“Live-in guardian accommodation is one solution to the housing problem that brings positive benefits to both the guardians and the property owners at the same time”
