If you’re currently in possession of a vacant building, ’squatting’ should be on your radar. (You can be sure that your vacant building is on the radar of the local opportunists!)

Empty commercial buildings are extremely vulnerable to squatting—both literally and under the law, as you will see—and the removal process can be lengthy and very expensive.

If you’re a commercial property owner feeling a need to brush up on your squatting law, you’ve come to the right place. Here’s everything you need to know about squatting in commercial properties.

What is Squatting?

Sometimes referred to as ‘adverse possession’, squatting is when a person deliberately enters a building without permission and resides at the property, or plans to live there. Squatting is classed as ‘illegal’ if the building is residential (a house or a flat), in which case, the perpetrators face 6 months imprisonment and/or a £5000 fine. 

Is Squatting in Commercial Property Illegal?

If you’ve spotted that commercial property is missing from the above definition of the term, you do not need to clean your spectacles… under UK legislation introduced in 2012, commercial landlords do not enjoy the same protection as residential landlords in the same situation.

This means squatting is not a crime if the building is designated as commercial and not designed for residential use. Squatters can legally reside in all kinds of commercial property, including vacant school buildings, office blocks and disused factories. If squatters admit they have broken into a commercial building, they have clearly committed an offence, but if windows or doors are left open, squatters can claim they walked in. In this case, owners will have to go through an expensive and somewhat lengthy court process.

You Cannot Forcibly Remove Squatters

If you’ve heard of the colloquial term ‘squatters’ rights’ you have some familiarity with the 1977 Criminal Law Act, which outlawed the threat or use of violence to enter a property where someone is present and opposes entry. The purpose of this legislation was to prevent property owners from using violence to evict tenants but it also applies if the person you want to remove from your property is trespassing, i.e. there without permission.

Squatters may also raise arguments like freedom of expression and freedom of assembly, both of which come under the Human Rights Act.

So if you’re a residential landlord and you find squatters in your property, your immediate course of action should be to seek legal recourse on the grounds that squatting is illegal. But, if you’re a commercial landlord, this legal route is not open to you, as squatting in commercial property is not a crime. Since you can’t forcibly remove the squatters, your only option is to seek legal advice and go through the court process.

Opposition to 2012 Legislation 

Not surprisingly, opposition to the 2012 legislation has been growing since it came into effect. The argument has been made that not only do commercial landlords not benefit from the 2012 legislation, but its existence makes their position worse. There is evidence supporting the suggestion that the law is discriminatory. Squatting in residential buildings has been reduced while squatting in commercial buildings has increased, i.e. the reduction in squatting in residential buildings is at the expense of commercial landlords. This is because squatters now avoid residential property in favour of vacant office blocks, libraries etc. The legislation is also unclear in the case of mixed-use property. For example, will squatting in a shop with a flat on the first floor be regarded as illegal?

Because the protection of the law does not extend to commercial property, landlords face a more circuitous and expensive route to removing squatters than used to be the case, a situation that will persist until the 2012 law is revised.

The Commercial Landlords’ Dilemma

Owners of vacant commercial property face mounting expenses and risk. Not only are commercial property owners expected to pay business rates despite the lack of rent-paying tenants, but they must also spend large amounts of money on security in order to keep squatters out (and avoid other threats like arson and vandalism, to name just two).

Going without security means risking the expensive and time-consuming legal proceedings required to evict squatters, knowing you face an uphill battle because the legislation offers no protection against squatting. To remove trespassers by legal means, you will need to prove in court that they have committed another offence, such as damage to property. This can be difficult if you no longer have safe access to the premises and/or don’t have evidence of the site’s prior condition and no witnesses. (And remember, the above mentioned Human Rights Act and Criminal Law Act may create additional—and expensive!—complexity.) 

Longterm Risk

While the short- to medium-term situation for commercial landlords is pretty dire (loss of money and time, damage to property, and a whole lot of hassle) we’re pleased to say that there is some ‘good’ news in this article, which is that it is not easy for a squatter to take legal possession of a property. A trespasser will need to reside at a property for 10 to 12 years before they can apply for ownership. (The 12 year rule applies in the case of unregistered land, while applicants for ownership of registered land will need 10 years’ occupation.)

That said, squatters pose a long-term risk in terms of severely devaluing your asset—not only will your property be impossible to rent or sell with squatters in situ, but it’s safe to say that squatters won’t be looking after the property or doing any maintenance! Wear-and-tear and other damages caused to the property could significantly reduce its value over time.

In the case of fire (arson or accidental) you will have a hard time getting insurance to pay out. Your policy may have lapsed after a few weeks of your property being vacated, and even if you have vacant property insurance, your policy is unlikely to cover use by illegal occupation.

Prevent Squatting With Blue Door Property Guardians

If you’re shutting down your business for the time being, closing up your commercial premises should be the easy part. But unfortunately, the possibility of squatting makes having a vacant property either very expensive (if you pay for security guards) or risky.

With Blue Door Property Guardians, you can avoid all cost and risk. Our reliable Guardian security gives you peace of mind (and can provide an extra revenue stream) so you can devote your attention and resources to new opportunities.

Give us a call today and we can arrange to secure your property against squatting and other threats at no cost to you.