In the ceremonial State Opening of Parliament on 10th May the Queen’s Speech sets out plans to force landlords to let out empty shops as part of the government’s initiative to rejuvenate the country’s high streets. To be known as the Levelling Up and Regeneration Bill the plans will give additional powers to local councils to enable them to force landlords of properties left empty for twelve months to enter them into a Compulsory Rental Auction, after which the successful bidder will be able to take over the premises to carry out their desired business.
The British Retail Consortium estimates that one in seven shops across the country are currently lying empty and unused, with many often standing vacant for several years. However, the British Property Federation, the organisation representing the UK real estate industry, brushed aside the idea of rental auctions, with Chief Executive Melanie Leech claiming: “We fully support government’s ambitions to revitalise town centres but political gimmicks such as compulsory rent auctions are not the solution.”
Levelling Up Secretary Michael Gove commented: “By empowering local communities to rent out shops which have been sat empty for a year or longer, we will end the scourge of boarded up shops that have blighted some of our great towns across the country for far too long. These measures will breathe new life into high streets, transforming once-bustling communities into vibrant places to live and work once again and restoring local pride.”
Under the proposals local councils will also gain greater powers to promote regeneration by using Compulsory Purchase Orders, enabling them to push through the re-purposing of buildings for infrastructure or housing use. In addition, red tape surrounding pavement licensing will be abolished, allowing businesses to serve guests on pavements in front of their properties and giving them additional capacity. The government is also to support high streets in providing £1.7 billion in temporary business rates relief for up to 400,000 retail, hospitality and leisure facilities over the next year.
Prime Minister Boris Johnson added: “High streets up and down the country have long been blighted by derelict shop fronts, because they’ve been neglected, stripping opportunity from local areas. We are putting that right by placing power back in the hands of local leaders and the community so our towns can be rejuvenated, levelling up opportunity and restoring neighbourhood pride.”
Bretherton Law has been serving people and businesses in Hertfordshire for over 50 years. If you are buying or selling business premises, looking to lease a new property, or subject to a rent review our experienced Commercial Property team will give you honest, professional advice. Contact Osman Dervish on 01727 869293, or use the Contact Us form.
