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Will councils begin selling off empty landlord properties?

empty properties

A property expert has voiced concerns that councils won’t have the resources to implement the government’s new high street auctions initiative.

Local authorities now have the power to take control of long-vacant high street properties, which aims to reverse the decline of town centres. They can lease properties that have been vacant for more than a year within two years, bypassing landlord consent, while premises must meet a Local Benefit Condition, demonstrating economic, social or environmental benefits to the area.

Ian Anderson (pictured), senior director at planning consultancy Lichfields, questions whether councils have enough resources and believes there is potential for friction between landlords and councils which could undermine collaborative efforts.

Anderson points to concerns that landlords may lease to unsuitable tenants to avoid auctions, undermining local planning goals, while cash-strapped councils may struggle to resource auction processes, limiting their effectiveness. In regions with declining footfall and consumer spending, filling vacant units could remain difficult regardless of the new scheme.

Landlord inaction

“If it were as simple as finding tenants, vacancies wouldn’t persist,” he says. “This initiative tackles landlord inaction but does little to address deeper issues like declining demand and changing consumer habits. Whether this delivers meaningful change remains to be seen.”

The policy was first announced by former housing minister Jacob Young in May this year, a measure contained within part 10 of the Levelling-up and Regeneration Act 2023.

Leases will be auctioned for up to five years, with no reserve price, giving local firms and community groups the chance to occupy space on the high street at a competitive market rate.

Auctions will follow a strict 11-week timeline, including a six-week marketing period to secure tenants. A new temporary permitted development right allows certain properties to change use without planning permission, reverting to their original use after the lease ends.

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