Squatting - everybody's doing it. But what legal rights do those involved actually have? asks ZOE WALKER

SOMETHING out there is brewing - a trend which in the past few months has seen two of York's highest profile unoccupied commercial properties, the White Swan Hotel and the Gimcrack pub, taken over by squatters.

The buildings have been used as homes, galleries and a community arts centre. These squatters have garnered public support, and there's no denying that they have managed to overturn many mainstream perceptions of themselves as the great unwashed.

But despite their efforts at renovating the dilapidated building, the White Swan squatters were taken to court and evicted, with £2,000 in legal costs awarded against some of them.

Meanwhile, there have been complaints about the squatters at the Gimcrack Hotel.

Knowing that in financial and legal terms squatting could cost them more than renting hasn't put them off, however, and a terraced residential property in Holgate Road, York, was recently occupied by a group who have been described as "the youth branch" of the larger group of squatters and peace activists who occupied the Gimcrack site.

So what legal legs do squatters, property owners and neighbours have to stand on?

Well, if you are an owner and your squatting guests are unwelcome then the process of removing them could prove more complicated than you think. You cannot simply take the law into your own hands and employ somebody - even the police - to oust them. So you will need to seek legal assistance as soon as you can.

"Once the squatters are in they can only be got out with a court order," says John Kendall of Langleys Solicitors in York.

"An order must be got once they are in - a notice which is a piece of paper served into their hands or pinned on a board or even just pinned on a stick in the ground."

After such a notice has been served squatters can either defend their right to remain or let the law take its course.

But squatters do have legal rights too - surprisingly generous rights, in fact. If the White Swan squatters had occupied the former hotel in 1990 and remained there until now the building would now belong to them and York would have its own bona fide Rainbow Peace Hotel - because if squatters can occupy a property unchallenged for a 12-year period then the ownership of that property will actually revert to them. "And the Land Registration Act 2002 will turn that into a ten-year period," says John.

But as regards health and safety for squatters, there's not much that can be done if the building they are occupying turns out to be dangerous or structurally unsound. A landlord has a legal duty to keep his building structurally safe, but once the property has been occupied by squatters it's difficult to establish and subsequently prove whether any damage to the property was already present at the time of occupation, or caused by the squatters after they entered it. If it turns out that the squatters have caused damage to the property then they will become liable for that damage, and will have to pay the costs accordingly.

But what if they turn out to be lifestyle-obsessed squatters, more intent on doing the place up than knocking it down? "Well, squatters have no legal rights if they do make improvements," says John. So the caveat for squatters is - do not invest too heavily in making improvements to a property that you're occupying. Your hard work can quite legally be pulled out from under you at any minute.

What if squatters settle themselves into a property and subsequently make an effort to pay rent for the property they are occupying? The owner is under no obligation to accept the offer, although if an offer of rent is accepted that completely changes the relationship between owner and squatter to a relationship between tenant and landlord, bringing with it all the attendant responsibilities of property maintenance on the part of the landlord and regular rent payments on the part of the tenant. "There is a very thick line between being a tenant and being a squatter," says John. Obviously a legal contract benefits and protects both parties.

If a resolution cannot be reached without legal assistance - if the squatters simply will not either vacate the property on request or don't wish to become tenants - then costly legal proceedings are inevitable. Squatters may be eligible for legal aid, which would help them with any costs incurred. "Judges can make orders for costs but it's not always the case that those costs are met," says John. "The owners are always going to end up with a bill, though."

After an order has been served and the matter has been dealt with by the courts, an eviction may be on the cards.

"When they have a court order the bailiffs can gain repossession of the land and can ask the police for help if they need it," says John. After which it is presumably a case of finding somewhere else to live all over again.

Updated: 10:09 Thursday, June 12, 2003