Local councils to receive new powers in December to force landlords to rent out empty shops

Local authorities will receive new powers in December that allow them to auction long-term empty high street properties.

Originally announced in 2022 in the former government's 'levelling up' white paper and introduced in the Levelling Up and Regeneration Act 2023, the changes will become law on 2 December following the laying of secondary legislation on Monday.

For properties left empty for more than 365 days in a 24-month period, councils will be able to step in and auction a one-to-five year lease through new high street rental auctions (HSRAs). There will be no reserve price so that small businesses and community groups can access the space.

Before putting a property to a rental auction, a local authority will first be required to resolve the vacancy by engaging with the landlord.

With one in seven high street shops currently closed, the changes are part of the government's efforts to revitalise town centres and local high streets.

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."

Emma Jones, founder of Enterprise Nation, said:

"Access to affordable space in the right place is one of the fundamental requirements that entrepreneurs and independent business owners need to grow. In our report last year, Enterprise Nation argued for extra powers for local authorities to take control of empty buildings and throw them open for community entrepreneurs with a proven track record.

"It's good to see these new common sense reforms are finally being introduced, offering a much-needed boost for our high streets and beyond."

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