Councils will be handed new powers next month to breathe new life back into high streets and transform long-term empty shops, the government has announced.

High Street Rental Auctions (HSRAs) will allow local leaders to tackle persistently vacant properties in city, town and village centres by putting the leases up for auction. This will boost the high street through a ‘right to rent’ commercial lots for businesses and community groups, after the powers come into force on 2 December 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.

Growth is at the top of the government’s agenda and it is committing over £1m in funding to support the auction process which will create jobs for local people and boost trade by bringing businesses, community services and customers back to the high street.  

With one in seven high street shops currently closed(1), the government is committed to revitalising town centres and bringing thriving high streets back for good. The news comes during Love Your High Street Week, organised by the British Independent Retailers Association (BIRA) to champion local businesses and innovation.

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.”

HSRAs form part of the government’s wider commitment to high streets and communities, with new measures announced in the Budget to support local business:

• Freezing the small business multiplier, protecting 90% of properties from inflationary increases in business rate liabilities.
• Announcing the intention to introduce 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. Supporting small businesses on the high street will be at the heart of this vision, which will also include measures to help SMEs access finance and access domestic and overseas markets. This is in addition to the action already announced to tackle the scourge of late payments that impact so many small firms, as well as new targeted advice and support for small exporters looking to trade around the world.

Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers will come into force on 2 December 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.

On Thursday 21 November Minister Norris will speak at an HSRA Showcase event in Wolverhampton, which stakeholders are invited to attend. The event will explain the powers in greater detail and introduce Early Adopters – local authorities that will champion HSRAs by immediately taking action and working with MHCLG to provide strategic guidance and best practice advice to other councils.

Notes to editors:

1. Source:  Forecast vs. Reality: A Comparison of H1 2023 Projections and Outcomes)