Local councils will get a share of £10 million to refurbish empty retail units under the government’s high street rental auctions scheme.

After a successful partnership with 12 early adopter local authorities launched in 2024, it now wants these powers taken up across the country.

Councils in England can auction off leases on retail units which have lain empty for a year or more across a two-year period. Grants of up to £5,000 are available to cover the legal, surveying and advertising costs of each auction, together with grants of up to £75,000 to carry out the necessary renovations under the initiative, with landlords encouraged to provide match funding.

Councils serve an initial notice on the landlord who gets a minimum eight-week grace period and then can’t let the premises without their consent. Councils must also conduct a survey to ascertain a list of works required from the landlord for their premises to reach an agreed minimum standard. The landlord is compelled to accept an offer and can choose any of the valid bids as the successful bidder – which gives local businesses and community groups the ‘right to rent’ empty commercial lots at market prices. Landlords can be fined up to £2,500 if they don’t reply to requests for information.

Cash

Housing minister Nesil Caliskan says the new cash is to “deepen our commitment to tackling the blight of boarded up shops that damages the vibrancy of high streets and encourages anti-social behaviour”.

She believes the powers are an effective lever to engage landlords, as more than 60 high street shop units have so far been reoccupied without a rental auction needing to be held, along with evidence of a tangible impact on vacancy rates.

“We now want to see these powers being taken up across the country, and to do this we will provide £10 million over the next two years which will be available to local authorities across England to apply for, to fund refurbishment grants and other associated costs,” explains Caliskan. “This will open these spaces up to new tenants - not just taking out eyesores, also providing businesses with access to tenancies at below market rent.”

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