The government has announced new legal powers aimed at revitalising town centre high streets and transforming long-term vacant commercial properties. Set to come into effect on 2 December 2024, the High Street Rental Auctions (HSRAs) will allow local councils to auction long-empty properties to businesses and community groups, giving them a ‘right to rent’ and breathe new life into these spaces.

This initiative is designed to tackle the issue of vacant properties in city, town, and village centres, empowering local authorities to take action against disengaged landlords who leave properties empty for more than 365 days within a 24-month period. After this period, councils can intervene and auction leases of one to five years to eligible tenants, helping to ensure these spaces are used productively.

The government has allocated over £1 million in funding to support the implementation of these auctions, with the aim of boosting local economies, creating jobs, and improving the vibrancy of high streets. The initiative forms part of a broader commitment to rejuvenate high streets across the UK, which have faced challenges in recent years, with reports suggesting that one in seven high street shops are currently closed.

Local Growth Minister Alex Norris highlighted the importance of high streets, stating, “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 further explained that this initiative would provide local councils with the tools needed to reinvigorate town centres, creating new opportunities for growth and business development.

Business Secretary Jonathan Reynolds echoed this, emphasising the role of small businesses in driving local economies. He added that the government’s broader strategy would also include measures to help small businesses thrive, including a consultation to address late payments, increased employment allowances, and expanded support for small exporters.

This move is part of a wider set of government actions aimed at supporting high streets and local businesses, including measures introduced in the recent Budget to freeze the small business multiplier and reduce business tax rates for retail, hospitality, and leisure properties from 2026-27. Additionally, the government has committed £250 million for small business loans in 2025-26 and an increase in the Employment Allowance to £10,500.

The introduction of High Street Rental Auctions is also in line with the government’s ongoing efforts to help small businesses, as demonstrated in its upcoming Small Business Strategy, which will be published next year. This strategy will outline further steps to assist SMEs, especially those operating on the high street, by improving access to finance and expanding market opportunities.

As the powers come into effect next month, there will undoubtedly be a keen interest in how these new measures play out in smaller market towns and rural areas. The impact on local economies, particularly in areas that have long struggled with high street vacancies, will be a crucial aspect to consider.

Read the announcement in full HERE