Local authorities will be able to auction off leases for empty commercial premises in a bid to revitalise struggling high streets.
Thanks to new powers from the government, councils will be able to auction one- to-five-year leases for empty town centre premises which have been unoccupied continuously for 365 days, or for at least 366 days within a 24-month period. Before putting a property to a rental auction, a local authority must first seek to resolve the vacancy by engaging with the landlord.
The Government is committing more than £1 million in funding for the High Street Rental Auctions scheme, which aims to create jobs and boost trade by bringing local businesses back to the high street.
Bassetlaw, Darlington and Mansfield councils have been named as ‘early adopters’ of the scheme, with Bournemouth, Christchurch and Poole Council joining the programme in an advisory role as ‘critical friends’. Additional local authorities have been invited to join the programme at a later stage.
Local Growth Minister Alex Norris said: “High streets lie at the heart of communities the length and breadth of this country. But in many areas, they are not what they used to be.
“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. 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.
“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.”
Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers came into force last month.
