Surge of Property Guardianship and Implications for Our Dysfunctional Housing Market
In Europe, particularly in the UK, a unique housing system known as property guardianship has gained traction as an alternative to traditional renting. This system, which originated as an anti-squatting measure, allows individuals to temporarily occupy empty or disused properties at discounted fees, often serving as a buffer against property vacancy.
The concept of property guardianship emerged in the 2010s, with organisations like Camelot Property Management leading the way. These contracts, distinct from tenancy agreements, grant occupants license status rather than tenant rights, altering legal protections and eviction processes.
While property guardianship was designed to deter squatting and address urban property management challenges, it exists separately from traditional legal guardianship, which pertains to the supervision of individuals unable to manage their own affairs.
The UK's housing market, characterised by a demand that outstrips supply, has driven landowners to sit on empty properties, either awaiting financing for redevelopment or navigating the time-consuming planning process. By employing property management agencies to find guardians, landowners can avoid higher non-domestic council tax and the responsibilities and regulations of standard tenancies.
However, the legal complexities surrounding property guardianship have raised concerns. Guardians typically reside under license agreements, which offer fewer safeguards compared to tenancies and can be terminated easily. This ambiguity has led to debates over eviction procedures and the applicability of unlawful eviction protections.
Moreover, the living conditions of property guardians have been called into question. Guardians may reside in buildings not designed for residential use, potentially lacking adequate facilities, fire safety measures, or maintenance, raising health and safety concerns. The trend of squeezing more guardians into poorly divided spaces with inadequate natural light and ventilation has also been highlighted in reports.
The precarious nature of property guardianship leaves occupants vulnerable to rapid eviction without the usual tenant safeguards. Financial insecurity is another issue, as contracts often involve low rents but can also mean unstable housing due to the property owner's ability to reclaim possession quickly.
Despite these challenges, property guardianship is marketed as a flexible, affordable, and adventurous housing option, potentially serving as a solution to the cost of living crisis. However, critics argue that it legitimises keeping buildings empty and makes it profitable, while representing a two-tiered system of tenants' rights.
As of 2019, estimates suggest there are around 60,000 property guardians in the UK, a significant increase from the government's 2017 estimate of between 5,000 and 7,000. The practice has also spread across Europe, with capitals including Ireland, France, Germany, Belgium, and the UK adopting this housing model.
In summary, property guardianship offers a contemporary response to property occupation, squatting laws, and evolving human rights protections relating to housing. However, its legal intricacies and potential impact on occupants' rights and well-being remain subjects of ongoing debate.
References:
- Guardian News & Media Limited
- Property Guardians Providers Association
- Human Rights Act 1998
- European Convention on Human Rights
- Historical Background of Guardianship
- Investing in real-estate properties, landowners in the UK are turning to property guardianship as a means to avoid higher non-domestic council tax and the responsibilities of standard tenancies, while still securing their property.
- The practice of property guardianship has expanded across Europe, with some countries like the UK adopting this system as an alternative to traditional real-estate investing, particularly in the segment of vacant properties.
