Consultation launched on plans to bring vacant town centre units back into use

High Street Rental Auctions (HSRAs) support the regeneration of town centres and high streets by giving councils the power to auction leases for commercial properties which have stood empty for more than 12 months within a two-year period.

The council plans to designate the town centre as the HSRA 'zone' where the new powers can be enforced.

Should businesses and residents support the plans, the council can target landlords who fail to actively market or let commercial units within a reasonable timeframe - with the council able to offer one to five-year leases on such properties at auction.

The council can also restrict the type of businesses which can bid for a lease at auction in order to ensure the town centre has a diverse range of shops.

Businesses and residents can now take part in the consultation, which aims to gauge support for the proposed HSRA zone and find out the reasons for either backing or objecting to the plans.

You can find out more information and take part in the consultation at www.rugby.gov.uk/HSRA

Cllr Michael Moran, leader of Rugby Borough Council, said HSRAs had an important part to play in the council's regeneration plans for the town centre.

"Long-term vacant commercial units have become an issue in town centres and high streets across the country, and the Government's new powers aim to equip councils with the tools to tackle the problem," Cllr Moran added.

"While we only intend to use these powers when we have exhausted all other avenues with landlords, HSRAs give us the opportunity to bring empty units back into use and breathe new life into the town centre."

The retail sector vacancy rate in the town centre was 15.7 per cent* in November 2024, compared to the national average of 14.2 per cent.

*The figure rises to 24.6 per cent when including the Rugby Central shopping centre, which currently has planning permission for a partial redevelopment of the site.

To launch a HSRA, the council must serve an initial notice on a landlord which starts a ten-week period when the landlord can be involved in the letting process.

After eight weeks, if the landlord has failed to agree terms with a new tenant with the council's consent, the council can serve a final notice which - subject to appeal - means a lease can be auctioned to the highest bidder.

The Government has made funding available for 'early adopters' of HSRAs, 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 and works to bring long-term vacant units back into use.

Cllr Jerry Roodhouse, leader of Rugby Borough Council's Liberal Democrat group, said: "These auctions will play an important role in supporting Rugby telling landlords they need to step up and play their part in our town centre.

"For too long, landlords have not played their part and we will use these powers when we have exhausted all other means."

The consultation closes at 5pm on Monday 11 August.