Propertymark has called for greater clarity about new legal powers that will see high street properties auctioned off.
The government recently announced that local authorities will soon have the power to carry out high street rental auctions (HSRA) to tackle persistently vacant properties.
These powers will come into force on 2nd December 2024.
With one in seven high street shops currently closed, the government is targeting “disengaged” landlords from sitting on empty properties for more than 365 days in a 24-month period.
At this point, councils will be able to step in and auction off leases of one- to five-years long.
Propertymark has welcomed the news but is calling on the government to release more details of these powers.
“Propertymark welcomes the move but we would like to see more detail on which areas will benefit the most, how the powers will be funded and how they will be used in practice by councils,” a statement from the trade body read.
Propertymark has also revealed it responded to the public consultation about the new powers in July 2023.
At that point, the group recommended that local authorities should have the power to design and implement HSRA as they see fit depending on the area.
Propertymark added: “We also urge councils to ensure that properties subject to an HSRA have a reserve price to protect market prices and to ensure the price at least covers the cost of any mortgages.”
Local growth minister Alex Norris is expected to discuss these powers more in a speech next week.
