Power to hold high street rental auctions to come into force on 2 December

Councils will have the power to hold high street rental auctions (HSRAs) from 2 December after secondary legislation was laid yesterday (11 November).

The powers, which were originally introduced by the Levelling Up and Regeneration Act 2023, are intended to allow local leaders to tackle persistently vacant properties in city, town and village centres by putting the leases up for auction.

The Ministry of Housing, Communities and Local Government (MHCLG) said this would boost the high street through ‘right to rent’ commercial lots for businesses and community groups.

It added: “The move will stop disengaged landlords from sitting on empty properties for more than 365 days in a 24-month period, before councils can step in and auction a one-to-five year lease.”

More than £1m in funding will be provided to support the auction process. 

Before putting a property to a rental auction, a local authority must first seek to resolve the vacancy by engaging with the landlord.

Local Growth Minister Alex Norris said: “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.

“We are giving local councils the tools to take back control. High Street Rental Auctions will put local communities first, re-energising town centres and driving local opportunities and growth.”

Business Secretary Jonathan Reynolds said: “This change further helps small businesses across the country, alongside new online support for exporters, a major consultation to tackle the scourge of late payments and an increase in the employment allowance for small businesses.

“We promised to lift the shutters on our great British high streets and we’re delivering real action across the board, to boost jobs, opportunities and get the economy growing.”

Early adopter local authorities will be unveiled at an event in Wolverhampton later this month (21 November). They will be expected to take immediate action and work with MHCLG to provide strategic guidance and best practice advice to other councils.