High streets are set to be revitalised as the Government hands councils new powers to tackle the issue of empty shops.
Effective from Tuesday 2nd December, local authorities will be able to auction off leases for commercial properties that have been empty for long periods.
The aim of the policy is to help bring business back to the high street and drive growth across the country.
High Street Rental Auctions aim to create 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 committed over £1m in funding to support the auction process, which will create jobs for local people and boost trade by bringing local businesses back to the heart of our communities.
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 said: “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 also announced that four local authorities will lead the way as early adopters of the new 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 today 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.
