Property guardians are not in rateable occupation of the buildings they occupy (Southwark London Borough Council v Ludgate House)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Property analysis: A common way to secure vacant commercial buildings against trespassers is to allow property guardians to enter into occupation. Increasingly, the presence of property guardians has been relied upon by property owners to displace their liability for non-domestic rates. The argument is that the guardians, and not the owner, are in rateable occupation, and, as the guardians are occupying as a residence, the property concerned should be removed from the rating list. However, the Court of Appeal held that the occupation of a large commercial building by property guardians was more akin to occupation by a lodger or caretaker and so the building owner remained in rateable occupation. Written by Faisel Sadiq, barrister at Hardwicke and co-counsel to the appellant.