Leisure Sector Update: Reclaiming the High Street: Government Launches Retail Auction Scheme

Welcome to the Harrison Drury Leisure Sector Newsletter. Your regular update on legal developments across the leisure, hospitality and tourism sector. Our aim is to keep you informed, prepared and ahead of the curve with insights tailored to support you and your business.

It is well-documented that one of the areas impacted most significantly by the recent economic climate has been the High Street, and it is all too apparent that many of the previously occupied shops, banks and other retail outlets stand empty. Some sources cite that as many as one in seven high street shops is currently closed.

The Government has recently handed new powers to local Councils (from 2 December 2024) in what it describes as an effort to breathe new life back into high streets and transform empty units by introducing “High Street Retail Auctions” (HSRA’s). These give Councils the power to auction properties that have been sitting empty for more than 366 days in any 24-month period on a one-to-five-year lease. The Government contends that this will prevent disengaged landlords from sitting on empty properties and suggests that by committing £1 million of funding to support the auction process, this regeneration of the High Street will bring a boost to local business and bring back life to the High Street, whilst at the same time creating new jobs in the local community.

Interestingly, separate recent reports have suggested that there is a long-term trend of traditional public houses closing, and that licensed premises numbers have increased for a second successive quarter, which would suggest an increase in other types of premises becoming licensed, quite possibly including former retail units on high streets.  Whether the new powers further such a trend will depend on the level of interested bidders and on the appetite of local authorities to use the powers, but it is certainly an area to watch with interest.

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