Subscribe to our newsletter to receive business tips, learn about new funding programmes, join upcoming events, take e-learning courses, and more.
Take the first step to successfully starting and growing your business.
Join for free)
Posted: Tue 3rd Dec 2024
Local authorities in England now have new powers to auction leases on long-term empty high street properties.
High street rental auctions (HSRA) came into force on Monday, with the aim at allowing councils to work on tackling the blight of persistently empty high street buildings and the knock-on effect they have on the local economy and community.
The changes are targeted at stopping disengaged landlords sitting on empty spaces for more than 365 days in a 24-month period. Currently, one in seven high street shops are empty.
The powers will initially be piloted by "early adopters". They are Bassetlaw, Darlington and Mansfield councils, with Bournemouth, Christchurch and Poole Council "in an advisory role as critical friends".
The government has committed around £1m in funding to support the auction process which requires an eight-week notice period for property owners targeted for auctions. After this, councils may issue an auction notice, and leases of one to five years can be auctioned 14 weeks later, with terms brokered by the local authority.
The auctions will give community groups the opportunity to bid for the spaces and offer independent retailers the opportunity to share the space with other brands on a short-term basis.
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."
Emma Jones, founder of Enterprise Nation, said:
"Removing the barriers that prevent new independent business from getting affordable access to high street spaces and their local community can only be an excellent thing.
"We know from having spent many years running collaborative pop-up shops, that being part of the high street is an important part of the business journey to growth for many small retailers, even when they are e-commerce based.
"It also allows small businesses to test their products and services or take up short term space when they can create a buzz for a limited period of time, driving traffic to their online business."
For towns like Ramsgate in Kent where the vacancy rate is 24%, a striking 10% above the national average, this issue has caused a decline in trade, increased vandalism, and eroded community pride.
Louise Brooks, executive director of Ramsgate Space CIC, said the new powers will help community action groups, working in partnership with local councils, to force absentee and portfolio landlords to open vacant premises to entrepreneurs.
"Ramsgate has seen another two shops close just this week. Persistent vacancies harm surrounding businesses, exacerbate anti-social behaviour, and drain vitality from the community.
"These powers give groups like ours vital leverage to persuade landlords of larger, persistently empty spaces to work with local councils and entrepreneurs to create affordable, active hubs."
However, Brooks, a regeneration consultant and former projects director at Meanwhile Space, emphasised that successful implementation will require strong collaboration. She said:
"Creative partnerships between councils, community groups, and landlords are essential. Initiatives like Makespace Oxford show how collaborative approaches can turn empty spaces into productive assets.
"The HSRA adds another important tool for revitalising high streets."
Ramsgate Space is supported by Enterprise Nation founder Emma Jones.
