The Ugly Truth About Squatters in Commercial Premises

If you’re responsible for vacant commercial premises, you should be thinking about squatters.

The reason why?

Because right now, as you read this, squatters will be thinking about your vacant premises. Empty commercial buildings are a magnet for them — and once squatters get in, it’s notoriously difficult and expensive to get them out again.

You’ll want to avoid the hassle so in this article, we will tell you everything you need to know about squatting.

What is squatting?

Squatting (sometimes known as `adverse possession’) is when someone deliberately enters a property without permission and lives there, or intends to live there.

In 2012, with the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act (the LASBO), squatting became illegal in residential buildings. Squatters who enter houses and flats are committing a criminal offence and can face up to 6 months in prison, a £5,000 fine, or both.

But here’s the important thing:

The LASBO has a large loophole. It does not cover commercial premises.

On its own, squatting in non-residential properties is perfectly legal. Provided the building is not designed for residential use, squatters can live there without breaking the law. Warehouses, office blocks, empty factories, vacant school buildings, pubs… The list goes on.

What can you do to get rid of them?

Very little. It is extremely difficult to evict squatters from commercial premises.

The police have no powers to intervene — and, ironically, if you try to forcefully evict them yourself, you will be committing a criminal offence.

Even though they are effectively trespassing on your commercial property, squatters have rights.

The problem with `squatters’ rights’

You’ve probably heard of `squatters’ rights’. They stem from the Criminal Law Act 1977. This makes it illegal to use or threaten violence to enter a property when the individuals living there oppose entry.

Originally, the law was brought in to protect tenants from being violently evicted by property owners. The problem is, the same law protects trespassers who enter a commercial building and decide to live there.

Also, you may find yourself coming up against the Human Rights Act. Squatters can (and often do) invoke the right to respect for private and family life, and the right to enjoy one’s possessions and not be deprived of them.

When can the police get involved?

As we’ve explained, simply living in a commercial property without permission is not a crime. The police can only take action if squatters commit other crimes while they are there.

For example, squatters will be committing a crime if they:

• Cause damage when they enter the property
• Cause damage while they are in the property
• Steal from the property
• Use the property’s utilities without permission
• Dispose of rubbish on the property, i.e. fly tipping
• Fail to obey a noise abatement notice
• Fail to leave when told to do so by the court

In practice, however, unless there’s substantial damage or a serious disruption to peace, the police are generally reluctant to get involved.

Even when police do intervene, you’re likely to face an expensive civil court battle to get squatters out of the building.

You will need to prove to the court that squatters have committed an offence. That will be tricky when you’re unable to enter the premises safely, there are no witnesses, and you don’t have evidence of the building’s prior condition.

The cost implications

The financial costs of squatting can be eye-watering.

As well as legal costs, you also have the loss of rental income, not to mention the cost of repairs. Even if you have vacant property insurance, your policy may not cover damage caused by illegal occupation.

In 2013, when squatters were evicted from an empty office building in Lambeth, the owners were left with a bill for more than £100,000. Squatters had caused such extensive damage that they could no longer refurbish the building. It was demolished.

How to avoid the squatting problem

The best way to avoid the squatting problem is to prevent it from happening in the first place.

Squatters will always check out the security of a building before they try to enter it. They look out for any signs of weakness — initially at the perimeter then at points of entry such as doors, windows and the roof.

They will check for CCTV and alarms and whether the building has manned guarding measures in place such as security officers or K9 security.

If a vacant commercial building is protected by robust security controls, this presents a major problem for potential squatters. They will steer clear of it.

If you’re in any doubt at all, ask us to carry out a risk assessment. We will check your premises for any weak points and recommend bespoke, affordable solutions for strengthening your security.

Get in touch with the Classic Services Group team on 0844 561 0578 or send a message here.