In an attempt to revitalise high streets, a government minister has confirmed that Labour will enforce a policy to compel landlords to rent out empty commercial units if they have stood vacant for more than a year. The initiative, originally introduced by the Conservative government in May 2023 under the Levelling-up and Regeneration Act, will now be carried forward with Labour’s backing as part of their commitment to tackle issues of persistent property vacancy in town centres.
The policy enables local councils to conduct “High Street Rental Auctions” on commercial properties that have remained unoccupied for over 12 months. Through this measure, councils will gain the authority to lease these vacant spaces to local businesses or community groups, encouraging economic activity, increasing foot traffic, and addressing social concerns linked to high vacancy rates, such as unemployment and anti-social behaviour.
The auctions, which can offer leases lasting up to five years, will operate with no reserve price, allowing small businesses and community organizations the chance to secure prime locations at market-competitive rates.
New Lease of Life for High Streets
Speaking on Labour’s commitment to the plan, housing minister Alex Norris addressed Parliament following a question from Labour MP Simon Opher on the policy’s continuation under the current government.
“The Government is fully committed to rejuvenating our high streets and tackling the issue of persistent vacancy,” Norris said. “To achieve this, we will implement new High Street Rental Auctions as set out in Part 10 of the Levelling Up and Regeneration Act 2023.”
Norris confirmed that secondary legislation would soon be introduced, enabling local councils to utilize this power and oversee the leasing of commercial properties that would otherwise remain dormant. No revised timeline has yet been provided for the start of these auctions, although the Conservative government had originally anticipated auctions would commence this year.
Addressing Economic and Social Challenges
This move to repurpose vacant retail spaces is seen as a lifeline for struggling high streets, which have faced increased closures and reduced footfall due to economic challenges, the rise of online shopping, and pandemic-related setbacks. By giving local authorities greater control over the management of these spaces, the government hopes to stimulate local economies and reduce the incidence of vacant, boarded-up shops, which have become symbols of decline in many communities.
In response, local business associations and community leaders have welcomed the policy, viewing it as a positive step to make high streets more accessible to a broader range of tenants.