Councils step up enforcement against commercial landlords

The government has handed councils new powers to crack down on long-term empty commercial properties.

Under new powers, councils can now take action against commercial landlords by auctioning leases of shops or offices left empty for more than 12 months through the High Street Rental Auctions scheme.

Bassetlaw District Council warns on their website that commercial landlords who fail to provide the required information could face hefty fines.

Local leaders will be empowered

In its statutory guidance for councils, the government warns the High Street Rental Auction scheme will empower local authorities to take stronger action against long-term vacant commercial properties.

Alex Norris MP, Parliamentary Under-Secretary of State (Local Growth and Building Safety), said: “Under this scheme local leaders will be empowered to take action where commercial landlords have not taken sufficient steps to rent property – auctioning off leases on premises that have been vacant for more than a year – and granting local businesses and community groups the ‘right to rent’ empty commercial lots at market prices.

“This will play a critical role in spurring regeneration, revival and renewal on a local level – and will be part of a package of measures we are deploying to put high streets and town centres back on their feet.”

The guidance adds: “High Street Rental Auctions will provide local authorities with a tool to use in places where vacancy rates are a problem and where there is little cooperation between commercial landlords and local authorities. We know that many landlords are proactive and want to fill their shops and we would always encourage local authorities to work with proactive landlords in the first instance.

“Where a landlord is not proactive or has been unable to secure a tenant, local authorities should consider whether there is likely to be interest from prospective tenants were the premises available at the Minimum Standard and at a fair market rent. In these instances, High Street Rental Auctions will provide a viable way to ensure vacant premises once again become active contributors to the local economy and high street experience.”

Council has 12 weeks to auction the lease and complete the tenancy agreement.

Under the new rules, the Notice Period begins with a local authority serving an initial notice on the landlord of premises they have identified as eligible for a High Street Rental Auction.

The landlord then has 8 weeks to arrange a new tenancy themselves, if the tenancy begins within that period and meets certain conditions, the auction process won’t go ahead.

However, if the final notice isn’t successfully challenged, the council has 12 weeks to auction the lease and complete the tenancy agreement.

Huge consequences for commercial landlords

Bassetlaw District Council has proposed designated areas for High Street Rental Auctions, citing high vacancy rates as a driving factor, with 13% in Harworth Town Centre and 23% in Worksop Town Centre.

The council warns that commercial landlords who fail to follow the rules could face serious consequences.

The council says on its website: “If a commercial landlord fails to comply with the obligation to provide information (either not supplying it or giving false information) or carries out works to the premises in contravention of the prohibition on such, it’s a criminal offence and the landlord will be liable to a fine.

“If the commercial landlord doesn’t choose a winning bid or won’t enter into the agreement for lease or lease, the local authority has the power to do so on behalf of the commercial landlord.”