Councils gain new powers to address empty high street shops

Legal changes granting local councils greater powers to find occupiers for empty units on high streets across England have come into effect.

Under the changes that came into force on 2nd December, local authorities will be able to auction off leases for commercial properties that have been empty for long periods. The move hopes to make it easier to bring business back to the high street and drive growth across the country. 

High Street Rental Auctions will create a ‘right to rent’ for businesses and community groups, giving them access to city, town and village centre sites. Where a unit is empty for more than 365 days in a 24-month period, councils can take action and auction a one-to-five year lease for the premises after having first sought to resolve the vacancy by engaging with the landlord. 

Government will support councils to progress with auctions by committing over £1 million in funding and has announced four local authorities – Bassetlaw, Darlington, Mansfield and Bournemouth, Christchurch and Poole councils – will pioneer the new powers as Early Adopters.

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.”

Originally introduced by the previous government’s Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers came into force after legislation was laid in November. The changes come ahead of Small Business Saturday on 7th December, a national campaign to encourage people to shop locally with independent businesses.