Security incidents and property-related problems at vacant commercial buildings cost landlords an average of £49,268 over the past year, according to a survey of 350 UK commercial property owners commissioned by SafeSite Facilities and carried out by Censuswide.
The findings point to a growing financial burden on owners of vacant commercial property, driven by a combination of crime, physical deterioration and rising insurance costs. Some 45% of landlords reported that incidents including building deterioration, theft, trespassing, pest infestations and water damage had cost them between £25,001 and £50,000 in the past year. A further 27% said costs had reached between £50,001 and £100,000.
Building deterioration was the most commonly reported problem, affecting 25.7% of landlords, followed by metal or cable theft (24.9%), anti-social behaviour (24%), pest infestations (20.6%) and water damage (20.3%). Trespassing affected 18.6% of owners, squatting 17.4%, theft 16.9% and vandalism or graffiti 15.7%. Fly-tipping was reported by 15.4% and arson or fire damage by 13.1%.
When asked which problem had caused the greatest difficulty, 22% of landlords cited building deterioration, 11% pointed to water damage and 9% identified trespassing.
Insurance costs have compounded the financial pressure. Almost all landlords surveyed (94%) had experienced increased premiums, tighter cover conditions, or both. Some 59% reported that premiums had risen because of vacant property risks, while 47% said insurers had tightened the terms of their cover.
"Many landlords understandably focus on the immediate risks of vacant properties such as theft, trespassing or vandalism. However, the real cost is often much higher once building deterioration, water ingress, pest problems, insurance implications and ongoing maintenance are taken into account," said Paul Goossens, operations director at SafeSite Facilities.
"An empty building can quickly become a significant financial liability if it is not properly protected. The longer a property remains vacant, the greater the potential for costs to escalate.
"Property owners should take a proactive approach to managing vacant assets through regular inspections, robust security measures and preventative maintenance. Investing in protection early is often far less expensive than dealing with the consequences of an incident after it has occurred."
