Businesses to get ‘right to rent’ long-term vacant shops as High Street Rental Auctions set to take effect

Councils will be handed new powers next month in an effort to breathe new life back into high streets and transform long-term empty shops, the government has announced.

High Street Rental Auctions (HSRAs) will allow local leaders to tackle persistently vacant properties in city, town and village centres by putting the leases up for auction, with businesses and community groups getting a ‘right to rent’ commercial lots.

The powers will come into force on 2 December through the legislation laid on Monday.

The government said the move will stop disengaged landlords from sitting on empty properties for more than 365 days in a 24-month period, before councils can step in and auction a one-to-five year lease.

The government has committed over £1 million in funding to support the auction process.

With one in seven high street shops currently closed, the government added that it is committed to revitalising town centres and bringing thriving high streets back for good. The announcement comes during Love Your High Street Week, organised by the British Independent Retailers Association to champion local businesses and innovation.

“This change further helps small businesses across the country, alongside new online support for exporters, a major consultation to tackle the scourge of late payments and an increase in the employment allowance for small businesses,” business secretary Jonathan Reynolds said.

“We promised to lift the shutters on our great British high streets and we’re delivering real action across the board, to boost jobs, opportunities and get the economy growing.”

The government will publish a new Small Business Strategy next year, setting out further measures to support SMEs and drive growth across the country.

Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers will come into force on 2 December following the laying of secondary legislation on Monday. Before putting a property to a rental auction, a local authority must first seek to resolve the vacancy by engaging with the landlord.