Thursday 27 October 2011
- Proposed Government changes to legislation could lead to increase in squatting in commercial property -
Following the Ministry of Justice’s announcement that it plans to make squatting illegal in residential properties, VPS, the Vacant Property Specialist, is warning owners and managers of commercial property not to be complacent as the new squatting laws could lead to an rise in squatters targeting empty commercial buildings, if passed in the House of Commons next week.
While VPS welcomes the Government’s action to speed up eviction, it is warning landlords and property managers of vacant commercial property not to be complacent, as the legislative changes will only apply to residential property and could potentially lead to a rise in commercial property being targeted by squatters.
When a £40m building between High Holborn and Oxford Street was taken over by partygoers, the building was occupied for nearly 48 hours until the trespassers finally called an end to the party, leaving behind a repair bill costing tens of thousands of pounds. There have also been documented cases of commercial properties being stripped out, suffering over £150,000 of damage.
According to VPS, the basic minimum clean-up bill for a small commercial property, such as a pub, after being squatted can be upwards of £1,500. This figure would increase dramatically for larger properties or where greater damage is perpetrated and does not take into account legal fees, which on average start at around £5,000.
With an estimated 100,000 incidents of squatting in the UK, the clean-up bill for commercial property owners and managers could cost £650 million, before taking into account the cost of any repair work.
It is not just squatting that poses a risk to vacant property. Proper protection will also guard against the high incidences of arson and vandalism. According to Aviva, £2 billion of damage is done to property in the UK through vandalism and arson, with 25% of this relating to empty properties.
Nick Tubbs, Managing Director VPS UK, said: “Security and loss of income are the biggest vacant property issues for commercial property owners and managers in the UK because where there are empty buildings, squatters can soon follow. While we welcome the Government’s proposed changes to the law, squatters may begin to target more commercial buildings, causing increased concern and cost for commercial property owners that are already operating in challenging market conditions. If more commercial buildings that are vacant or temporarily unoccupied are targeted it could also become a real issue for surrounding communities.”
In addition, the new legislation may not reduce the damage and clean-up costs that squatters can often leave behind, as the majority of damage is caused in the first 48 hours of occupation.
Tubbs adds: “The new legislation can only go so far to speed up eviction timeframes. The majority of damage to squatted properties takes place within the first 48 hours of the premises becoming occupied, so proper protection is vital. Prevention is the best course of action to mitigate the risks posed by squatting, arson and vandalism and will avoid a costly clean-up bill, at a time when over half (51%) of UK property owners and managers are affected by vacant property.*”
VPS offers the following advice to property owners and managers, who can take the following steps to ensure their property is well protected:
• Taking immediate action when a building becomes vacant is the most effective way to protect a property and mitigate the risks associated with squatting. You are required by law to inform your insurer immediately when a property becomes vacant. They may have specific requirements to ensure your building is properly covered.
• Undertake a comprehensive risk assessment using a specialist company to assess potential risks, such as fire hazards and public liability exposure as well as the exposure to damage from squatters/ criminals.
• Isolate and shut down the power and gas supplies and drain down your water systems properly to avoid flooding. Clear the property making sure to remove any combustible material. Install a letter box seal to prevent arsonists or squatters setting fire to the property. A build up of mail is also a vital clue that a property is empty.
• Ensure the perimeter of the property is secure and where required fit steel fittings to windows and doors. Instigate a minimum weekly inspection of the property both internally and externally – as required by most insurance providers.
• Secure the property with a permanent security officer and/ or alarm (which includes passive infrared smoke detectors and water detectors). Not only will the alarm act as a deterrent, but if squatters do gain access, the alarm activation will register any break-in. This can act as evidence when applying for an Interim Possession Order – a fast track eviction process.
Not only will these steps help to address concerns linked to squatting, but minimise the negative impact on local communities.
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