Breaking Property News 19/12/24
Daily bite-sized proptech and property news in partnership with Proptech-X.
High street Auctions’ initiative launches to revive Britain’s town centres
This month the UK Government rolls out its highly anticipated ‘High Street Auctions’ scheme, a flagship measure of the Levelling Up and Regeneration Act 2023. This initiative grants local authorities the power to take control of long-vacant high street properties, marking a significant shift in how high street vacancies are tackled.
With high street vacancy rates reaching 17.6% in Q3 2024 and shopping centres recording 14%, the legislation aims to reverse the decline of town centres by enabling new uses for idle spaces.
Under the Act, local authorities can lease properties vacant for over one year or 366 days within two years, bypassing landlord consent. Premises must meet a ‘Local Benefit Condition,’ demonstrating economic, social or environmental benefits to the area. Auctions will follow a strict 11-week timeline, including a six-week marketing period to secure tenants. Furthermore, a new temporary Permitted Development right allows certain properties to change use without planning permission, reverting to their original use after the lease ends.
The legislation applies broadly to high street premises, including shops, offices, restaurants, community halls and light industrial spaces.
Ian Anderson, Senior Director at Lichfields, said: “This is a bold and untested approach to tackling high street vacancies. While it gives local authorities new powers, we question whether they have the resources to implement such an ambitious scheme effectively. Furthermore, the potential for friction between landlords and councils could undermine collaborative efforts critical to revitalising our town centres.”
Although the initiative has sparked interest, concerns have been raised about its feasibility and long-term impact. For example, property owners may lease to unsuitable tenants to avoid auctions, undermining local planning goals. Cash-strapped councils may struggle to resource auction processes, limiting their effectiveness. In regions with declining footfall and consumer spending, filling vacant units may remain difficult despite the auctions.
Anderson continues: “If it were as simple as finding tenants, vacancies wouldn’t persist. This initiative tackles landlord inaction but does little to address deeper issues like declining demand and changing consumer habits. Whether this delivers meaningful change remains to be seen.”
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
You May Also Enjoy
How to Clean Your Rental Property for a Full Deposit Return
Two-year mortgage deals the lowest they’ve been since 2022 – but will they remain?
CP12 Landlord Certificates: What They Are and Why You Need Them
Horse Guards Parade property prices up 17% since last Trooping the Colour
What landlords need to know about the upcoming Renters Rights Bill