Next month, councils will be granted new powers aimed at revitalising high streets and addressing the growing issue of long-term vacant shops. The government claims these powers will “breathe new life back into high streets” and transform underutilised retail spaces that have been a blight on local communities for years.
The key feature of this new initiative is the introduction of High Street Rental Auctions (HSRAs), a scheme that will allow local authorities to take decisive action against properties that have been empty for extended periods. Under this system, councils will be able to auction off the leases for these empty commercial spaces, providing an opportunity for businesses and community groups to secure affordable rental properties.
The government’s statement explains that these powers will help “boost the high street” by offering ‘right to rent’ commercial lots, which are expected to encourage a wide range of local enterprises to take up these spaces. This could include independent shops, pop-up businesses, or community services that might otherwise struggle to find suitable premises.
Set to take effect on December 2 through legislation laid on Monday, these new powers will give councils the tools they need to tackle the issue of empty retail units more effectively. With high streets under pressure from changing consumer habits and the rise of online shopping, this initiative could provide a much-needed boost for struggling town centres, making them more vibrant and diverse places for locals to enjoy.
The government is set to introduce new powers for councils, aimed at tackling the growing issue of vacant commercial properties. Starting in December, local authorities will have the ability to intervene when a property has remained empty for over 365 days within a 24-month period. Under the new legislation, councils can auction leases for these properties, offering terms between one to five years. This move is expected to put pressure on landlords who have been disengaged or unwilling to lease their properties, providing a solution to the long-term vacancy problem.
The High Street Rental Auctions (HSRAs) are designed to address the issue of underutilised commercial spaces that are taking up valuable real estate in town centres. Local leaders will be empowered to auction these spaces, providing an opportunity for businesses and community groups to rent properties at more affordable rates. The hope is that this will breathe new life into high streets, making them more attractive to businesses and shoppers alike, and reducing the number of vacant shops that have become a blight on many town centres.
Currently, the UK is facing a concerning trend with high street shops, with one in seven now closed due to the growing shift towards online shopping and changing consumer habits. This has led to a decline in footfall and a reduction in the vibrancy of many town centres, leaving high streets feeling empty and neglected. The government is committed to reversing this trend by revitalising these spaces and reintroducing businesses that can contribute to the local economy. These new powers are seen as part of a broader effort to support the recovery of high streets and town centres.
In response to these challenges, the government has expressed its commitment to transforming town centres and creating more opportunities for businesses. By empowering councils to take action against disengaged landlords, this initiative is hoped to play a key role in rejuvenating struggling high streets. The ability to offer leases through auctions will provide a practical solution to long-term vacancy issues, helping to attract a new generation of businesses that can revitalise these spaces and drive local economic growth.
Local Growth Minister Alex Norris has spoken about the importance of revitalising high streets, stating that “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.” He continued, emphasising the government’s commitment to empowering local councils with new tools to tackle this issue. The introduction of High Street Rental Auctions (HSRAs) will enable councils to take control of empty properties and put them to better use. This initiative aims to re-energise town centres, creating more opportunities for local businesses and fostering growth in communities.
The HSRAs form part of a broader government strategy aimed at transforming town centres and supporting local businesses. The government has pledged to help revitalise high streets through several key measures. One of the main proposals includes freezing the small business multiplier, which will protect 90% of properties from inflationary increases in business rate liabilities. This will provide relief to many small businesses, helping them manage the financial pressures they face in the current economic climate.
In addition, the government has committed to lowering business tax rates for retail, hospitality, and leisure (RHL) properties permanently from 2026-27. This move aims to support businesses in these vital sectors and help them thrive in the face of ongoing challenges. The government also plans to provide better access to finance for small businesses, with a £250 million commitment in 2025-26 to fund the British Business Bank’s small business loans programmes. This funding will help entrepreneurs secure the financial support they need to start or expand their businesses, contributing to the regeneration of town centres.
Furthermore, the government plans to increase the Employment Allowance, raising it from £5,000 to £10,500. The threshold for eligibility will also be removed, making this benefit available to all eligible employers. This measure will help businesses reduce their national insurance liabilities, further supporting the growth and stability of local businesses. Together, these initiatives are designed to breathe new life into town centres and promote local economic development, benefiting communities across the UK.
The government has announced plans to publish a new Small Business Strategy next year, which will outline additional measures aimed at supporting small and medium-sized enterprises (SMEs). This strategy is expected to play a crucial role in driving growth across the country, helping businesses thrive in an increasingly challenging economic environment. The focus will be on creating a supportive framework for SMEs, ensuring they have the resources and opportunities to expand and contribute to the local economy.
One of the key measures included in the government’s plans is the introduction of the High Street Rental Auctions (HSRAs), which will be implemented from December 2, following the laying of secondary legislation earlier this week. These powers were originally introduced as part of the Levelling Up and Regeneration Act 2023, and they aim to tackle the issue of empty properties on high streets. By allowing local authorities to auction leases on vacant properties, the government hopes to revitalise town centres and encourage businesses to take up these spaces.
Before a property is put up for auction, local authorities will be required to first engage with the landlord to try and resolve the vacancy. This step ensures that efforts are made to encourage landlords to take responsibility for the properties they own before councils step in with more direct action. The process will allow councils to take a more proactive role in managing high street properties and reducing the number of vacant spaces that contribute to the decline of town centres.
The implementation of HSRAs is expected to be a key part of the government’s strategy to boost the high street economy and bring life back to town centres. By addressing the problem of empty properties, local councils will have the opportunity to breathe new life into these areas, creating more opportunities for businesses and improving the overall appearance and vitality of high streets across the country.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property