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Squatting in commercial premises

Traditionally, the problem of squatters in empty premises has been confined to residential buildings where squatters have entered, often when residents are away on a long term trip or where, for whatever reason, a building has sat empty for some time. However, with changes in the law introduced last year making squatting in residential premises illegal for the first time, a new type of problem has arisen. This is the issue of squatters in commercial premises, which is becoming an increasing problem for those who own the premises, particularly when it comes to trying to evict the squatters.

The reason for this situation is that squatting in commercial premises is not currently illegal. The anti-squatter laws that have been introduced with respect to residential homes have not yet been extended to commercial property – although there have recently been calls for this to be done. Squatting in a residential property is now a criminal offence that attracts a maximum penalty of six months in prison or a £5,000 fine – or both. However, no such sanctions exist for commercial property and, as a result of the crack down on residential squatting, commercial premises are being targeted by squatters far more. This is in spite of the fact that commercial premises may actually be more likely to be empty than residential premises, putting them more at risk of attracting squatters. There may also be more scope for causing damage to a commercial property, as it is simply not suitable for mass habitation. This is likely to be particularly the case where a property contains expensive machinery or stock of any sort.

Two cases recently reported in the Evening Standard concerning the Borough of Lambeth illustrate why there is a very good reason to criminalise squatting in commercial premises, as well as residential. In one property on Westminster Bridge Road in the Lambeth borough a group of squatters took over, stripping the building of all its assets and causing a number of disturbances, including an alleged rape, attempted suicide and violent assault. In the case of Patmos Lodge in the same borough squatters were eventually successfully evicted from the property but at a cost of some £15,000 for security and the actual eviction.

The government has yet to come down on either side of the fence when it comes to squatting in commercial premises, despite the fact that there have been numerous calls for action this year, particularly after what is seen as the effectiveness of the anti squatting crack down on residential properties. What the Justice Secretary Chris Grayling has said is that the government is “aware of reports that the offence of squatting in a residential building ... might be encouraging squatters to occupy non-residential buildings. We are monitoring this situation closely.” For those commercial property owners whose buildings have been occupied, or who are having to pay steeply rising bills to secure commercial premises that are not currently in use, there is a pressing need for the government to take action in the same way as we have seen for residential premises.