Councils will be handed new powers next month 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 the leases 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.
Growth is at the top of the government's agenda and it is
committing over £1m in funding to support the auction process
which 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(1), the
government is committed to revitalising town centres and bringing
thriving high streets back for good. The news comes during Love
Your High Street Week, organised by the British Independent
Retailers Association (BIRA) to champion local businesses and
innovation.
Local Growth Minister 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 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.”
HSRAs form part of the government's wider commitment to high
streets and communities, with new measures announced in the
Budget to support local business:
- Freezing the small business multiplier, protecting 90% of
properties from inflationary increases in business rate
liabilities.
- Announcing the intention to introduce permanently lower
business tax rates for retail, hospitality, and leisure
properties (RHL) from 2026-27.
- Providing access to finance – committing £250m in 2025-26 for
the British Business Bank's small business loans
programmes.
- Increasing the Employment Allowance from £5,000 to £10,500
and removing the £100,000 threshold, expanding this to all
eligible employers.
The government will publish a new Small Business Strategy next
year, setting out further measures to support SMEs and drive
growth across the country. Supporting small businesses on the
high street will be at the heart of this vision, which will also
include measures to help SMEs access finance and access domestic
and overseas markets. This is in addition to the action already
announced to tackle the scourge of late payments that impact so
many small firms, as well as new targeted advice and support for
small exporters looking to trade around the world.
Originally introduced by 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.
On Thursday 21 November Minister Norris will speak at an HSRA
Showcase event in Wolverhampton, which stakeholders are invited
to attend. The event will explain the powers in greater detail
and introduce Early Adopters – local authorities that will
champion HSRAs by immediately taking action and working with
MHCLG to provide strategic guidance and best practice advice to
other councils.
Notes to editors:
- Source: Forecast
vs. Reality: A Comparison of H1 2023 Projections and
Outcomes
