This article has been provided for member charities by Association panel consultant, Birketts LLP, a full service law form that cover the regions of East Anglia, London, South East, South West.

Can the trustees of a charitable almshouse charity let someone in need live in an empty almshouse, even if they do not meet the criteria for residence?

We are often asked this question and you can easily see why. In many parts of the country, there is a real and pressing housing shortage, and almshouses can play a vital role in alleviating some of the pressures that can be caused by that shortage.  Surely, allowing an individual in need to live in an empty almshouse is for the greater good and therefore OK?

The legal framework trustees must follow

But as is so often the case, these things are rarely that straightforward. As you may know, charitable almshouses are required to operate only in furtherance of their charitable purposes for the benefit of the public. For anyone unsure as to what their charity’s purposes are, you will need to check the governing document for any description of purposes, objects or more generally how any property held on trust is to be applied.

Challenges with outdated or restrictive governing documents

Many of the almshouse charities we work with were established with very old and/or restrictive provisions about who should be permitted to live in the almshouses. They also often have detailed provisions stipulating how any income of the almshouse charity is to be applied. For example, we have seen almshouse charities with use of income provisions that were drafted before the advent of the NHS and required the income to be used to pay for the residents’ medical expenses. Once the NHS arrived, there was much less call on the funds for this purpose and as a result, a significant amount of money built up. In a similar vein, we have seen almshouse charities with very narrow criteria for residents; think old widows of good character who have resided within a mile of the almshouses for many years and attend church regularly, type provisions.  In practice, narrow or out-of-date provisions can mean that the almshouses are either regularly empty or filled with residents who did not meet the criteria, which is technically a breach of the governing document by the trustees.

Reviewing and updating charity provisions

To guard against this and ensure that your charitable almshouses are addressing the needs of your local area and having a beneficial impact, trustees should regularly review the objects concerning use of income provisions, and consider whether any changes are needed. Even if there is no power of amendment in the governing document, there are statutory powers of amendment that trustees can usually rely on to make these changes. Any changes to either of those provisions require the Charity Commission’s prior consent. The Commission will want to know that the proposed changes are similar to the purposes being altered and necessary in light of current social and economic circumstances. Whilst going through that process can be time-consuming, ultimately it will help your charitable almshouses to better meet the needs of your local communities for many years to come.

posted 6 May 2026

Click to access the full list of Almshouse Association panel consultants. It is important that members satisfy themselves that the services, qualifications and relevant membership of professional bodies meet their particular needs.

This article has been provided by Association panel consultant, Rebuild Cost Assessment Ltd, a rebuild cost consultancy, to share with our members, particularly those that are responsible for listed buildings.

Would your insurance policy fully restore your listed almshouse if it had to be rebuilt exactly as it stands today?

Rebuilding must often be carried out “like-for-like”, using traditional materials and specialist craftsmanship. This makes accurate insurance far more complex and far more important.

Why listed buildings cost more to rebuild

Unlike modern properties, listed buildings are subject to strict conservation requirements. If damage occurs, repairs must typically match the original design, materials, and construction methods. That can mean sourcing specific stone, using lime mortar instead of cement, or employing skilled craftspeople such as stonemasons or heritage carpenters.

These requirements significantly increase costs. Materials are often scarce, labour is specialist, and projects take longer to complete. In some cases, rebuilding costs can far exceed what the property might sell for on the open market.

This is where many charities encounter risk.

Rebuild cost is not market value

Market value reflects land, location, and demand. Insurance, however, is based on rebuild cost, which is the total cost of reinstating the building, including demolition, professional fees, and compliance with current regulations.

For listed almshouses, the difference can be substantial. Relying on market value or outdated estimates can leave a property significantly underinsured.

The impact of underinsurance

Recent data from RebuildCostASSESSMENT.com (RCA) shows that 70% of UK properties are underinsured. For listed properties specifically, that rises to 78% underinsured. On average, underinsured buildings are covered for just 67% of their actual rebuild cost.

This becomes critical when the “average clause” is applied. Most building insurance policies include this condition, which reduces a claim in proportion to the level of underinsurance.

For example, if a building is insured for £1,000,000 but the true rebuild cost is £1,500,000, it is only insured for 67% of its value. A £300,000 claim could therefore be reduced to £200,000, leaving a £100,000 shortfall.

For a charity, that gap can be difficult to absorb and may delay or limit reinstatement.

Why sums insured fall behind

Even when cover was once accurate, it can quickly become outdated. Construction costs continue to rise, and listed buildings are particularly sensitive to increases in specialist labour and materials.

Works to improve energy efficiency or maintain heritage features can also increase rebuild costs. If these changes are not reflected in the sum insured, underinsurance can develop over time.

Practical steps for almshouse charities

• Obtain a professional rebuild cost assessment for listed properties
• Review valuations regularly (at least every three years, or after major works)
• Ensure the sum insured reflects specialist materials, labour, and professional fees
• Do not rely on index-linking alone to maintain accuracy

For listed almshouses, getting the sum insured right is essential to protecting both the building and the residents who rely on it.

Almshouse Association members receive preferential rates at RebuildCostASSESSMENT.com using code *Almshouse20*.

posted 6 May 2026

Click to access the full list of Almshouse Association panel consultants. It is important that members satisfy themselves that the services, qualifications and relevant membership of professional bodies meet their particular needs.

The Almshouse Association Property and Development team

We are delighted to share that two exceptional volunteers have recently joined our property support team.

As listed and older buildings become increasingly costly to manage, yet remain vital to the communities they serve, we are especially fortunate to have the support of two highly experienced property volunteers.

Learn more