Councils get new powers to auction off leases for long-term empty shops on high streets

Local councils across the UK have been handed new powers to tackle the scourge of empty shops as High Street Rental Auctions (HSRAs) took effect on Monday (2 December).

Local authorities will be able to auction off leases for commercial properties that have been empty for long periods, with the HSRAs creating a ‘right to rent’ for businesses and community groups, giving them access to city, town and village centre sites.

The changes will stop disengaged landlords sitting on empty lots for more than 365 days in a 24-month period, before councils can auction a one-to-five year lease.

The government has committed over £1m in funding to support the auction process, which is expected to create jobs for local people and boost trade by bringing local businesses back to the heart of the communities.

“Small businesses need our support and that’s why we are creating a ‘right to rent’ so that high street lots that have been left empty for far too long can be brought back to life,” local growth minister Alex Norris said.

“We want shops and shoppers back on the high street – and that’s what these changes will help to bring.”

Business secretary Jonathan Reynolds added: “Empty shop premises that gather dust aren’t doing any good to high streets, jobs and the economy. This is why we said we’d lift the shutters, and today we are delivering on that promise.

“Paired with the wider small business strategy to tackle late payments, getting more SMEs exporting, and boosting access to finance, we are unashamedly backing small firms, to get more people into well paid jobs and help grow our economy.”

The government has announced that four local authorities will lead the way as Early Adopters of the new high streets powers. Bassetlaw, Darlington and Mansfield councils will set an example for other local authorities across England, while Bournemouth, Christchurch and Poole Council will join the Early Adopters programme in an advisory role as critical friends.

Additional local authorities have been invited to join the programme at a later stage.

Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers came into force after legislation was laid in November. Before putting a property to a rental auction, a local authority must first seek to resolve the vacancy by engaging with the landlord.

The changes come ahead of Small Business Saturday this week, and the business secretary kicked off a week of activity ahead of the event by visiting several small businesses in and around Walthamstow High Street in North-East London.