Properties benefitting communities
Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions (HSRA) powers have been activated by secondary legislation introduced on 7 November 2024.
The move will prevent landlords from sitting on empty properties for more than 365 days in 24 months. Once that threshold is reached, councils can step in and auction a one-to-five-year lease, however, they must first try to resolve the vacancy by engaging with the landlord.
In a speech on Thursday 21 November 2024, Local Growth Minister Alex Norris will explain the powers in greater detail and introduce Early Adopters – local authorities that will champion HSRAs by immediately acting and working with the Ministry of Housing, Communities and Local Government to provide strategic guidance and best practice advice to other councils.
Local authorities must engage with qualified agents
Propertymark is supportive of HRSA, as empty properties can become magnets for anti-social behaviour and vandalism, impact a location’s economic performance, and impact positive footfall, risking the viability of other businesses nearby.
Responding to the public consultation on the proposals in July 2023, we recommended that local authorities should have the power to design and implement HSRA as they see fit depending on their area, provided they consult Propertymark commercial agent members.
We also urge councils to ensure that properties subject to an HSRA have a reserve price to protect market prices and to ensure the price at least covers the costs of any mortgages. Local authorities who wish to outsource the auction process should work with Propertymark commercial agents, who can evidence the skills required.
Further plans to revive towns and cities
HSRA form part of the UK Government’s strategy for town centres, which it says includes protecting small businesses from inflationary increases in business rates, a pledge to permanently lower business tax rates for retail, hospitality, and leisure properties from 2026-27, committing £250m in 2025-26 for the British Business Bank’s small business loans programmes, and increasing the Employment Allowance from £5,000 to £10,500 and removing the £100,000 threshold, expanding this to all eligible employers.
A new Small Business Strategy is expected to be published in 2025, setting out further measures to support SMEs and drive growth across the country.
