The UK government has officially unveiled its plans to breathe new life into struggling high streets by enforcing regulations requiring landlords to rent out empty stores. This initiative was announced as part of the Levelling up and Regeneration Bill, which was introduced during the Queen’s Speech. The bill will grant local councils enhanced planning powers, enabling them to take control of vacant buildings that have been empty for more than a year and make them available to potential tenants.
The economic impact of the pandemic and the closure of retail businesses has resulted in numerous properties being left vacant. However, even prior to the pandemic, there was already a notable decline in physical retail due to the increasing popularity of online shopping. Currently, approximately one in seven stores across the UK remain unoccupied, with certain regions experiencing even higher vacancy rates, potentially affecting one in five stores.
To combat this issue, the government is considering implementing compulsory rental auctions, aiming to convert more empty retail spaces into residential properties. The introduction of these auctions has sparked a division of opinions, with supporters emphasizing the benefits they could provide and opponents from the property sector criticizing them as mere “political gimmicks.” Additionally, some individuals within the retail industry argue that alternative and simpler solutions should be explored to rejuvenate the retail sector.
Jace Tyrrell, the outgoing CEO of the New West End Company, is advocating for a loosening of Sunday Trading Laws in designated International Centres such as Knightsbridge and the West End. Tyrrell suggests that extending shopping hours on Sundays could potentially generate an additional £250 million per year and offer support to struggling high streets nationwide. This policy change could also create manufacturing jobs for luxury retailers, as their products are often produced in different parts of the UK.
In conclusion, the UK government’s decision to enforce regulations compelling landlords to rent out empty stores aims to revive high streets and tackle the issue of vacant retail properties. While these plans have received support from those who stand to benefit, the property sector’s opposition and calls for alternative solutions highlight the complexities surrounding this issue. As the government remains committed to its levelling-up agenda and endeavors to stimulate economic growth, discussions on additional measures to support the high street’s recovery are expected to continue.
Useful links:
– British Property Federation
– New West End Company
