Broxtowe Council has become the first local authority in England to formally serve a High Street Rental Auction (HSRA) notice under the new government scheme.
The Nottinghamshire borough identified a retail unit in poor condition in Stapleford, which prompted the landlord to invest more than £40,000 to refurbish and bring it back into productive use. It’s now a thriving hair and beauty salon.
The council is one of 11 ‘early adopter’ areas in England to auction off leases on retail units which have lain empty for a year or more across a two-year period. The government has made funding available for these early adopters, with grants of up to £5,000 available to cover the legal, surveying and advertising costs of each auction, together with grants of up to £75,000 to carry out the necessary renovations under the initiative, with landlords encouraged to provide match funding.
Minimum
Councils serve an initial notice on the landlord who gets a minimum eight-week grace period and then can’t let the premises without their consent. Councils must also conduct a survey to ascertain a list of works required from the landlord for their premises to reach an agreed minimum standard. The landlord can choose to accept any of the valid bids as the successful bidder – which gives local businesses and community groups the ‘right to rent’ empty commercial lots at market prices. Landlords can be fined up to £2,500 if they don’t reply to requests for information.
Eligible
Broxtowe has now identified further eligible properties within the Stapleford HSRA Designated Area and is progressing through the notice and auction periods. It explains that more businesses are expected to move into previously vacant shops over the coming months, boosting footfall and helping the town centre thrive.
Council leader Milan Radulovic (pictured) says this demonstrates it is serious about tackling long-term vacancy in town centres. He adds: “Identifying empty properties and signalling that action will be taken if they remain unused, encourages landlords to bring premises back into productive use – creating opportunities for local businesses and residents alike.”
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