Councils handed powers to auction empty shops from December
Councils will be given fresh powers to breathe new life back into high streets and transform long-term empty shops next month as the government’s high street rental auctions plan comes into force.
The auctions, which had been proposed under the previous administration through the Levelling Up and Regeneration Act 2023, will allow local leaders to tackle persistently vacant properties in city, town and village centres by putting the leases up for auction.
The powers will come into force on 2 December.
Councils will be given fresh powers to breathe new life back into high streets and transform long-term empty shops next month as the government’s high street rental auctions plan comes into force.
The auctions, which had been proposed under the previous administration through the Levelling Up and Regeneration Act 2023, will allow local leaders to tackle persistently vacant properties in city, town and village centres by putting the leases up for auction.
The powers will come into force on 2 December.
The new legislation is designed to stop disengaged landlords from sitting on empty properties for more than 365 days in a 24-month period. Once a council has tried to resolve any vacancy issues through dialogue with the landlord, it will be able to step in and auction the property on a one-to-five-year lease.
The government has committed more than £1m in funding to support the scheme. The previous government had committed £2m.
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.”
The plans were initially welcomed by the real estate industry when announced in early 2023.
At the time, British Property Federation chief executive Melanie Leech said: “Outdated legislation has hindered town centre regeneration for years, and it’s great to see government finally make good on their 2020 promise to review it.
“Ideally the review would be of all commercial tenancy legislation, but even a more limited review of the 1954 Landlord & Tenant Act could see some straightforward changes to speed up, simplify and reduce the cost of starting and renewing tenancies making it easier to let empty properties, in turn boosting town centre economies.”
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