Areas Affected
- Lichfield District wide
High Street Rental Auctions (HSRA) is a new power for local authorities to require landlords to rent out persistently vacant commercial properties to new tenants such as local businesses or community groups. They were introduced in December 2024 as part of the Levelling Up and Regeneration Act 2023.
1 in 7 shops now lie empty nationwide, which can see higher unemployment rates, upturns in anti-social behaviour and a lack of pride from residents in their local high streets. This new initiative will allow us to work with landlords to bring buildings back to life, reducing the number of vacant premises. Our aim is to increase footfall and improve the high street economy.
A premises is eligible for a High Street Rental Auction where it has been unoccupied continuously for 12 months, or for at least 366 days (non-continuously) within a 24-month period.
We’ll be working to identify properties in the following two zones initially (maps included in the survey): Burntwood High Street Designation and Lichfield High Street Designation.
FAQ’s
For full information and government guidance, please visit the UK Gov website
What is the purpose of the high street rental auctions?
The government has introduced high street rental auctions to help local authorities increase the occupation of high street properties and improve local economies. Lichfield District Council is one of the early adopters of the programme.
Which premises are affected?
The new regime will apply to commercial premises in England (other than premises last used as a warehouse, which are specifically exempt) which satisfy the following criteria:
- Designation: within an area the local authority has designated as being a high street or town centre;
- Vacant: unoccupied for the whole of the last year or for at least 366 days in the last two years;
- Suitability: suitable for ‘high street use’; and
- Change beneficial: considered by the local authority to benefit the local economy, society or environment if occupied for ‘high street use’.
- The government has stated that the target areas are those in economic decline with high vacancy rates and landlords not actively taking steps to rent the property. On that basis, we don’t expect the high street rental auction process to be used for all vacant properties which meet the conditions above, particularly where landlords are proactive in seeking new occupants.
How will the rental auction work?
The auction period lasts for twelve weeks and service of a final letting notice starts the process. There is a procedure for the landlord to appeal the service of a final notice on specified grounds. The requirements of the first ten weeks are detailed in the regulations.
Of note, before the end of the third week, the landlord may be required to give the following information:
- full and accurate responses to general pre-contract enquiries for commercial property transactions, including any supplemental pre-contract enquiries relevant to commercial property on the grant of a tenancy;
- proof of the landlord’s title to the premises; and
- if available, current copies of the electrical installation testing certificate, the energy performance certificate, the water safety certificate, the gas safety certificate, the fire safety certificate, the test certificate for any relevant mechanical, electrical or life safety systems, the fire risk assessment and asbestos survey (with asbestos management plan, where relevant).
During this period, the landlord may also make representations regarding the proposed agreement for lease and tenancy terms.
The marketing period is between the 5th and 10th weeks and this is when bids will be received.
The same restrictions on landlords granting their own leases, licences, etc. apply during the final notice period. In addition, the landlord mustn’t carry out any works to the premises during this period without the local authority’s consent.
What consequences are there for landlord non-compliance?
If a landlord fails to comply with the obligation to provide information (either not supplying it or giving false information) or carries out works to the premises in contravention of the prohibition on such, it’s a criminal offence and the landlord will be liable to a fine.
If the landlord doesn’t choose a winning bid or won’t enter into the agreement for lease or lease, the local authority has the power to do so on behalf of the landlord.
What are the next steps for Lichfield District Council?
Lichfield District Council are one of the early adopters of the programme. There is currently a public consultation live to share your views on the initial designated areas. Click here to participate.
To be able to use these powers, we first need to consult with residents, businesses and stakeholders on which areas of the district we want to initially focus on. We are proposing to initially focus on Lichfield City and Burntwood.