Making sense of High Street Rental Auctions and the 'right to rent'

The essential information on High Street Rental Auctions that could help independent retailers fill consistently empty lots on local high streets and 'take back control' of their communities...

Have you ever looked across a high street, seen a vacant shop building or boarded up commercial property with a 'To Let' sign in the window and thought, "that's been empty for ages, why has no one filled that unit?" Whether a shopper or a shopkeeper, it's something that many people who frequent town centres have thought at some point or another, and it's become an increasingly common sight in the last few years.

With independent high street businesses having had to face down a number of challenging conditions in recent times, it would stand to reason that those who do want to open up or expand their operations should be able to snap up these vacant units. However, a number of landlords are not taking the necessary steps to fill their empty buildings. Thankfully, there may now be a way to change that.

The independent retail sector, among others, can now take advantage of a scheme called High Street Rental Auctions (HSRAs) that allows local councils and authorities to auction off leases on persistently vacant commercial properties if the landlords that own them aren't taking the sufficient steps to try and fill them.

We've summarised the key information on HSRAs, including what they are, how they work, why they're being used and what the process is to make use of the new scheme.

High Street Rental Auctions - what they are and what they do

High Street Rental Auctions (HSRAs) are a new mechanism introduced to address the growing problem of persistently vacant commercial properties on high streets. The scheme allows local councils to step in and arrange an auction for the lease of these properties when landlords fail to let them within a reasonable timeframe or do not actively market them.

The goal is to revitalise high streets by ensuring empty units can be put to productive use. By enabling independent retailers and other businesses to bid for these leases, the scheme aims to create vibrant commercial areas, support local economies, and reduce the negative impact of long-term vacancies.

How long does a premises have to be empty for a HSRA to be used?

For a property to qualify for a HSRA, it must meet the following conditions:

• The premises must have been vacant for more than 366 days in the previous two years.
• The vacancy must be "persistent," meaning it has not been used for a commercial purpose or let during the specified timeframe.

Additionally, the local authority must determine that the landlord has not taken reasonable steps to occupy, let, or market the property.

In this article we summarise the key elements of High Street Rental Auctions, including who controls the process, what happens in a HSRA, how to submit a bid and what happens if you're successful. Join Bira to access this and more member only content.

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