Squatters move into capital’s priciest areas

Squatting has at least trebled because of the recession and it is properties in the most affluent areas of London that are most at risk.

A survey reveals that addresses taken over in Chelsea, Belgravia and Mayfair have created the most legal disputes.

Statistics released today by legal publisher Sweet & Maxwell show that 29 cases related to squatters and trespassers were heard in the High Court in the year to last December 31.

This compares with just 10 in 2008, which itself is a major increase from two cases in 2007 and only one in 2005.

But this represents only a snapshot of the true extent of the problem, because traditionally very few cases against squatters reach this stage.

Analysts stress that most cases against squatters are resolved long before they reach the High Court.

Sweet & Maxwell attributes the increase to the rising number of vacant properties and growing homelessness caused by the recession. The numbers have been boosted by an influx of organised squatters from Europe forced out by debt crises in their own countries.

The credit crunch and fall in property values mean developers are leaving more and more buildings empty in expensive London streets as they wait to secure funding for construction work or for the market to pick up.

Prime property in central London is also increasingly at risk of squatters because a growing proportion of the owners spend much of the year overseas.

According to property agency Knight Frank, half of all £2 million-plus properties sold in central London go to overseas buyers. This rises to 60 per cent in Mayfair, Knightsbridge and Hampstead, and 70 per cent of all homes over £5 million.

Legal cases involving squatters and trespassers have also risen in private rented accommodation and social housing. As unemployment has risen more tenants have defaulted on rent payments which often leads them to be re-classified as trespassers.

A homeowner who finds his house has been invaded by squatters can ask the police to help remove them but the law only permits prosecution for criminal damage.