Councils will be handed new powers next month which the government claims will “breathe new life back into high streets and transform long-term empty shops.”

High Street Rental Auctions (HSRAs) will allow local leaders to tackle persistently vacant properties by putting the leases up for auction. 

The government statement says: “This will boost the high street through ‘right to rent’ commercial lots for businesses and community groups, after the powers come into force on December 2 through legislation laid on Monday.

“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.”

With one in seven high street shops currently closed the government claims it is committed to revitalising town centres.

Local Growth Minister Alex Norris says: 

“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.”

HSRAs form part of the government’s strategy for town centres, which it says includes: 

• Freezing the small business multiplier, “protecting 90% of properties from inflationary increases in business rate liabilities”;

• Pledging to 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.

The government will publish a new Small Business Strategy next year, setting out further measures to support SMEs and drive growth across the country. 

Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers will come into force on December 2 following the laying of secondary legislation on Monday. Before putting a property to a rental auction, a local authority must first seek to resolve the vacancy by engaging with the landlord.