High Street Rental Auctions in action this week

As of Monday (2nd December), local authorities have new powers to be able to auction off leases for commercial properties that have been empty for a while, helping high streets revitalise and encourage growth up and down 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. These come as a measure to stop 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.

Growth is a key mission for this Labour government, and so committing over £1 million in funding will help support auction processes, in turn creating jobs for local people and boosting 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 in to well paid jobs and help grow our economy.”

On Monday, the government announced that four local authorities will be the first Early Adopters of these new high street powers: Bassetlaw, Darlington and Mansfield councils will set the example, while Bournemouth, Christchurch, and Poole Council will join in an advisory role. Additional local authorities have been invited to participate at a later stage.

The High Street Rental Auctions came into force following legislation laid in November, as part of the Levelling Up and Regeneration Act 2023. Before putting a properly to a rental auction, the council must first seek to fill the vacancy by engaging with the landlord.

This comes part of the government’s wider initiative to support high streets and small businesses to try and encourage economic growth nationwide, breaking down barriers to opportunity and fixing the foundations of the economy. The changes come ahead of Small Business Saturday this weekend, a major event the government is proud to support.