As rents continue to rise across many parts of the UK, particularly in cities such as London, Bristol, Manchester and Birmingham, an increasing number of people are exploring alternatives to traditional renting. One option that has grown significantly over the past two decades is property guardianship. Property guardians live in vacant buildings at a reduced cost in exchange for occupying and helping to protect them from vandalism, squatting, theft and deterioration. Last year, the Property Guardian Providers Association (PGPA) estimated there were between 10,000 and 15,000 property guardians in the UK, mainly in major cities, with most aged between 20 and 35.
A property guardian is someone who occupies a vacant building under a licence agreement rather than a tenancy agreement. The building may be awaiting redevelopment, sale, refurbishment or demolition, and the owner appoints a specialist guardian company to manage the property. The guardian company licenses rooms or areas within the building to individuals who agree to live there temporarily and comply with various rules, such as not causing nuisance, not subletting and allowing inspections.
Because the arrangement is usually a licence rather than an assured shorthold tenancy, guardians generally do not have the same security of tenure as conventional renters.
Pros and Cons
One of the main attractions of guardianship is cost. Monthly licence fees are typically 20–50% lower than comparable private rents in the same area. For example, in London, a guardian room might cost £450–£850 per month, whereas a similar room in the private rental market could easily exceed £900–£1,400.
In cities such as Bristol, Leeds or Manchester, guardian accommodation may range from £300–£650 per month, often significantly below market rates.
Most schemes require a deposit (often equivalent to one month’s licence fee), an administration or referencing fee in some cases, proof of employment or a minimum income, and sometimes a requirement that guardians be over 21 and working full-time or part-time.
Utilities may be included in some licences, but in others, guardians contribute separately to electricity, water, heating and internet costs.
The standard of accommodation varies widely. Some buildings are professionally converted and resemble shared flats, while others retain many features of their previous use, resulting in unusual layouts and limited sound insulation. When you are sharing some living space with up to 50 other people, this can become a problem.
The legal position of guardians is one of the most important aspects to understand. Most guardian agreements are drafted as licences to occupy, meaning the guardian has permission to live in the property but does not usually receive exclusive possession of a specific dwelling. There is little security of tenure – guardians may be asked to move out for any or no reason, often with 28 days notice.
Rights
However, guardians are not without rights. They are protected by general contract law, health and safety legislation, and laws against unlawful eviction and harassment. Buildings used for guardianship must still meet basic safety standards, including fire safety requirements, electrical safety where applicable, and reasonable living conditions. If a guardian believes the arrangement is actually a tenancy rather than a licence, a court can examine the reality of the occupation rather than simply the wording of the contract.
In summary, guardian schemes are often located in central or well-connected urban areas where conventional rentals would be unaffordable for many young professionals, key workers, artists and freelancers. People between house moves, relocating for work, or saving for a deposit may appreciate the temporary nature of guardianship. The biggest drawback is uncertainty: redevelopment plans can proceed quickly, and guardians may receive notice to leave with relatively little time to find alternative accommodation.
Find out more from the PGPA, www.propertyguardianproviders.com.
A longer version of this feature appears in the next issue of Property & Home With Martin Roberts
See also: How to Invest in a REIT
