High streets are set to be revitalised as the government hands councils new powers to tackle the scourge of empty shops.
From yesterday (Monday, 2 December), local authorities will be able to auction off leases for commercial properties that have been empty for long periods, helping 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. The changes will stop disengaged 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.
With growth a key mission for the government, it is committing over £1m in funding to support the auction process, which will create jobs for local people and boost 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 into well paid jobs and help grow our economy.”
The government has announced today that four local authorities will lead the way as enthusiastic Early Adopters of the new high streets powers. Bassetlaw, Darlington and Mansfield councils will set an example for other local authorities across England, while Bournemouth, Christchurch and Poole Council will join the Early Adopters programme in an advisory role as critical friends. Additional local authorities have been invited to join the programme at a later stage.
Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers came into force today after legislation was laid in November. Before putting a property to a rental auction, a local authority must first seek to resolve the vacancy by engaging with the landlord.
High Street Rental Auctions form part of the government’s wider commitment to support high streets and small businesses, as part of work to drive economic growth in all parts of the country, break down barriers to opportunity, and fix the foundations of the economy. The changes come ahead of Small Business Saturday this week, a major event in the commercial calendar which the government is proud to support.
Earlier today, Business Secretary Jonathan Reynolds kicked off a week of activity ahead of Small Business Saturday by visiting several small businesses in and around Walthamstow High Street in North-East London.
Small businesses are the backbone of our economy, making up 99% of UK companies and employing more than 60% of the workforce. When they thrive, the country thrives. That’s why government has already announced a number of other changes to back small businesses including
- 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.
Supporting small businesses is at the heart of this government’s growth mission, and plans are underway to unleash the potential of small businesses all around the country. A new Small Business Strategy will be published next year.
For more information
Further information on High Street Rental Auctions can be found in the Technical Guidance.
