'I pay £580 a month to live in a disused care home': Property guardians show us around

LONDON – In one of the capital's most affluent neighbourhoods, where monthly rents for a single room regularly exceed £1,000, Katrina pays just £580. The catch? Her home is a sprawling, disused Edwardian care home, and she shares it with 50 other people. This arrangement, known as property guardianship, is gaining significant traction as a solution—albeit a precarious one—to the UK's escalating cost of living and housing affordability crisis.

As financial pressures mount on households, a growing number of individuals are turning to this unconventional housing model. They occupy vacant commercial and residential buildings—from former banks and pubs to offices and care homes—in exchange for heavily discounted "licence fees," which are often 30-50% below local market rents. For property owners, it's a cost-effective way to secure their assets against squatters, vandalism, and decay. For guardians, it's a financial lifeline.

Katrina, a 29-year-old professional, has lived in the former Hampstead care home for nearly a year. "It's the only way I could afford to live in this part of London," she explains. "The savings are huge, but you have to be flexible. This isn't your typical flatshare."

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The Guardian Model Explained

Property guardianship operates on a three-way agreement between a property owner, a specialist guardian agency, and the guardian. The model is distinct from a traditional tenancy, carrying a different set of rights and obligations.

How It Works

The system is designed primarily for property security. Owners of vacant buildings contract a guardian company to fill the space with vetted individuals. The presence of these "guardians" deters crime and ensures the property remains in good condition.

• The Premise: Guardians are not tenants; they are licensees. Their primary role is to live in and protect the property. This legal distinction is critical and has major implications for their rights.
• The Financials: Guardians pay a weekly or monthly licence fee, not rent. This fee is substantially lower than private rental rates. In many cases, bills like council tax, water, and electricity are included, further enhancing the financial appeal.
• The Obligation: In return for the low cost, guardians agree to a set of rules. These often include no parties, no smoking indoors, no unauthorised long-term guests, and a duty to report any maintenance issues, such as leaks or break-ins, immediately.

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Economic Drivers Fueling the Trend

The rise of property guardianship is not accidental. It is a direct response to powerful economic forces affecting both renters and commercial property owners.

For Guardians: A Response to the Rental Crisis

The primary driver for individuals is the hyper-competitive and expensive private rental market.

• Cost of Living: With inflation eroding real wages and energy costs remaining high, housing has become the single largest expenditure for many. Guardianship offers a substantial reduction in this core expense.
• Rental Market Failure: Record-high rents, intense competition for properties, and the scarcity of affordable housing, particularly in major cities, have priced many people out of the conventional market. Guardianship provides an accessible alternative for key workers, artists, and young professionals.

For Property Owners: A Business Decision

The arrangement is equally rooted in financial pragmatism for the owners of these vacant buildings.

• Security Costs: Human presence is often a more effective and affordable deterrent than traditional security measures like patrols, alarms, or steel-shuttering.
• Tax Mitigation: Owners of empty commercial properties are often liable for full business rates after a three-month grace period. Installing property guardians can reclassify the building as residential, significantly reducing or eliminating this tax burden.
• Maintenance and Insurance: A lived-in property is less likely to fall into disrepair from issues like damp or undetected leaks. Many insurers also offer lower premiums for occupied buildings compared to vacant ones.

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A Precarious Pact: The Hidden Costs of Low Rent

While the financial benefits are clear, the trade-off for guardians is a significant lack of long-term security and fewer legal protections than private tenants. This precariousness is the fundamental drawback of the model.

• A Question of Rights: As licensees, guardians are not covered by the Landlord and Tenant Act 1985. This means landlords are not legally obligated to ensure the property is "fit for human habitation" in the same way, and guardians do not have the same rights regarding deposit protection schemes.
• The 28-Day Countdown: The most significant risk is the short notice period. Guardians can be asked to vacate the property with just 28 days' notice, without the owner needing to provide a specific reason. This stands in stark contrast to the longer, more protected notice periods afforded to tenants under an Assured Shorthold Tenancy.
• Unconventional Quarters: Living conditions can vary dramatically. While some properties are well-maintained former homes, others are converted offices or industrial spaces with basic amenities, shared bathrooms, and makeshift kitchens. The communal living in large properties like Katrina's requires a high degree of tolerance and adaptability.

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Outlook: A Stopgap Solution in a Strained Market

The property guardianship sector is expanding, fueled by a perfect storm of a post-pandemic glut of vacant commercial real estate and an acute housing affordability crisis. For thousands, it represents a workable, if temporary, solution.

However, its growth raises important questions for the housing market and regulators. Critics argue that it allows property owners to bypass responsibilities while profiting from a housing shortage. Proponents see it as an innovative model that brings disused buildings back to life and provides much-needed, low-cost housing.

As the trend continues, pressure may mount for a clearer regulatory framework that offers guardians greater protections without dismantling the flexibility that makes the model viable. For now, it remains a stark indicator of a housing market under immense strain, where living in a disused care home has become a rational financial choice for a growing number of people.