From 2 December, local authorities in England will be able to hold rental auctions to let out vacant high street and town centre properties. This will be possible without requiring the consent of the owner or any superior landlords or mortgagees.
The Government recently stated that councils will be handed these new powers “to breathe new life back into high streets and transform long-term empty shops”.
Central to the story is the concept of ‘high street use.’ It includes (but is not limited to) uses such as shops, offices, restaurants, bars, community halls and manufacturing.
Global law firm Dentons advises that the scheme should be a comparatively simple one, although it remains to be seen just how many times the system will be utilised. “While some may fear these new powers allow local authorities to take control of high street vacant premises to force lettings on owners, there are several conditions that must be satisfied before the powers can be exercised (for example, designation as a high street; satisfaction of the vacancy condition).
In addition, there is a question as to the extent to which local authorities will choose to use [the new powers], even with Government funding.”
To be within scope of the local authority’s high street rental auction powers, premises must:
- Be situated on a designated high street or in a designated town centre, designated by the local authority
- Be considered by the local authority to be suitable for a high street use
- Have been unoccupied for the whole of the immediately preceding year or 366 days in the immediately preceding two years and any time spent vacant before the provisions come into force still counts
- Be such that the local authority is satisfied that occupation of the premises for a high street use would be beneficial to the local economy, society or environment
For more information, see the Government’s initial announcement here.
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