Councils are to be handed new legal powers to carry out compulsory High Street Rental Auctions that will give businesses and community groups a ‘right to rent’ long-neglected town-centre commercial properties.
Councils will be handed the new powers next month by government 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 leases on the properties up for auction.
This will boost the high street through a ‘right to rent’ commercial lots for businesses and community groups, after the powers come into force on 2 December through legislation laid on Monday.
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.
Government’s is committing over £1m in funding to support the auction process which will its hoped will create jobs for local people and boost trade by bringing businesses, community services and customers back to the high street.
With one in seven high street shops currently closed, the government has said its committed to revitalising town centres and bringing thriving high streets back for good.
Penrith has a number of long term empty retail spaces across the town including the old Co-op on Sandgate that closed in 2016 and has stood empty in the town centre ever since.
The news comes during Love Your High Street Week, organised by the British Independent Retailers Association to champion local businesses and innovation.
Local Growth Minister Alex Norris said:
“High streets are the beating heart of our communities. But for too long, too many have been neglected, with more and more empty lots and boarded up shopfronts.”
“We are giving local councils the tools to take back control. High Street Rental Auctions will put local communities first, re-energising town centres and driving local opportunities and growth.”
Business Secretary Jonathan Reynolds said:
“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.
“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.”
Originally introduced by the last government as part of 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.
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