On 6 March 2025, the Department for Levelling Up, Housing and Communities announced that a further eight local authorities will participate in the pilot programme for High Street Rental Auctions (HSRAs). These auctions aim to bring long-term vacant high street properties back into use across town centres.
Building on the involvement of the original three pilot authorities:
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Bassetlaw District Council
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Darlington Borough Council
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Mansfield District Council
The following eight Councils have also now committed to the process of implementing HSRAs:
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Barnsley Metropolitan Borough Council
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Broxtowe Borough Council
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London Borough of Camden
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London Borough of Hillingdon
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Lichfield District Council
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North Northamptonshire Council
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North Somerset Council
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Westminster City Council
HSRAs initially derive from the previous Government’s Levelling Up and Regeneration Act 2023, which provided enhanced powers to local authorities to let vacant town centre properties without requiring the consent of the owner or any superior landlords or mortgagees. This was covered in our earlier blog, “Auctioning the Hight Street?”
[4].
Following this, the Labour Government introduced secondary legislation in November 2024, bringing the HSRA powers and associated Permitted Development (PD) rights into force on 2 December 2024. For further context, see our blog: ‘Revitalising town centres: Can rental auctions turn the tide?’”
[1]Under the new legislation, Class DB allows the conversion of eligible high-street properties to a suitable use via permitted development provided two conditions are met:
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The local authority managing the rental auction notifies the local planning authority of the intended high-street use, the start date of that use, and the date it will cease.
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At the end of the tenancy, the premises must return to their original use, as mandated by the legislation.
The central aim is to empower local authorities to bypass prolonged landlord inaction and to facilitate auctions that may provide opportunities for small businesses, meanwhile uses and pop-up initiatives to emerge and drive footfall back to the town centres.
To qualify, a unit must have been vacant for more than 12 months (or 366 days non-continuously out of the last two years). If this condition is met and no action is taken by the landlord following notice, a rental auction can be launched to attract new tenants and promote economic activity on the high street.
Given the necessary 10-12 week notice period and the subsequent 12 week auction timeline, to date, we are yet to see significant HSRAs come into fruition. However, initial notices began in December 2024, and we expect to see the first active HSRAs take place as we approach summer 2025. The expansion to 11 participating councils is a strong indicator that this mechanism will become increasingly common across the country.
Whilst, to some extent, HSRAs represent a tool of last resort, they reflect the Government’s commitment to tackling persistently high vacancy rates—currently at 13.8% across UK high streets—by introducing innovative approaches to regeneration.
[2] Although the momentum is still building, the additional eight authorities to the pilot suggests a continuing commitment by the Government to push forward with this as an initiative for town centres as an
‘important weapon in their [local authorities] armoury’[3] Lichfields continues to monitor the position and has provided a series of updates regarding the HSRAs, including a comprehensive breakdown of the required criteria for HSRAs to apply.
[1]Vacant units continue to provide many opportunities for growth and repurposing to drive footfall back into town centres. Lichfields’ Repurposing Insight provides a range of the guiding principles for successfully repurposing town centre buildings to assist with rejuvenating vacant retail properties into active use.
[5]If you have a vacant town centre property and are looking at repurposing or revitalisation opportunities, we’d be happy to discuss how we can support your plans—please don’t hesitate to get in touch.
Footnotes
[1] Revitalising town centres: Can rental auctions turn the tide?
[2] Spotlight: Shopping Centre and High Street - Q4 2024 (Savills)
[3] Alex Norris MP Parliamentary Under-Secretary of State (Local Growth and Building Safety)
[4] Auctioning the High Street? (Emily Thomson)
[5] Out with the old, in with the new: Guiding principles for successfully repurposing town centre buildings
