For most in the world of business, Q4 2025 was dominated by the Chancellor’s second Autumn Statement and the swirling uncertainty surrounding it.
While 2026 has begun with some more positive economic indicators, there’s no doubt that things remain tough out there.
The pressure on pubs in particular has been making headlines with the demise of the Revolution Bars chain being indicative of the challenges being faced by hospitality. Hospitality is by no means the only sector struggling under the weight of economic uncertainty however.
For the property industry, this means empty units.
Whether its breweries sitting on empty pubs waiting for better economic times, restaurant owners closing up shop through the winter or industrial units searching for new tenants, commercial property owners need to strategise for the property vacancies in 2026.
Real Estate, Real Risk
As anybody in property knows, empty properties are risky properties.
Criminals often equate a lack of on-site activity with a lack of security meaning properties are vulnerable to trespassing, vandalism and, of course, break-ins and theft. Without everyday maintenance and monitoring too, structural issues can quickly escalate from minor problems to major headaches. Fire is a further risk, whether accidental or deliberate. Research indicates that there are as many as sixty fires per day in unoccupied properties across the UK.
So, as property owners wait out the current economic downturn, keeping vacant properties safe should be a top priority.
This is where many property owners – and the UK as a whole – are falling short.
Mind the Gap
When there are a thousand things on the daily to-do list, business owners often struggle to find time to look ahead and prepare for the hypothetical. Insurance can often be an afterthought.
The insurance industry too is often reliant on outdated valuations, policies which lag inflation and low-effort, low-premium policies. This is also leaving property owners at risk. An irony of many insurance firms is that they’ve become averse to complex risk. As a firm focused on complex risk, our own success at Aspect is testament to this.
Whether it’s commercial sites with complex machinery, on-site lithium batteries or properties being used to house asylum seekers and other vulnerable residents, the insurance industry is often all too willing to turn these prospects down. After all, giving a fair and sustainable assessment of complex risk takes time and levels of sector expertise which firms sometimes lack.
This has left the UK dealing with a huge insurance gap.
Research suggests as many as one in four commercial properties in the UK are underinsured. As many as 88% of commercial sites are underinsured on building values meanwhile, while 77% are underinsured on plant and equipment. The problem is especially acute for SMEs, the businesses that form the backbone of the economy and yet are most vulnerable to the unexpected.
So, how can property owners – and the insurance industry – plug this gap?
For property owners, regularly engaging a reputable surveying firm is key. Make sure you have up-to-date records, valuations and risk assessments and ensure these are matched by your insurance policy. Only by understanding can businesses manage risk. As risk intensifies, at least in the short term as more commercial properties are left vacant, a proactive approach to risk is business critical.
For the insurance industry, big data and AI is making risk assessment much easier in many ways. But tech shouldn’t come at the expense of old school site visits and manual risk assessments. It’s this attention to detail that ensures businesses have the protection they need, and help plug the insurance gap.
Many commercial property owners will be thinking about how best to ride the economic turbulence the sector is currently facing. Keeping properties safe and secure is, needless to say, essential here. By investing in security, risk assessment and the right policies now, property owners can ensure that, when better economic times do arrive, they’re well placed to capitalise on them.
