HIGH STREET RENTAL AUCTIONS Moving from designation to delivery

Ana Isabel Pasantes

Ana is the High Street Rental Auctions Executive Officer in the High Streets Policy team at MHCLG.

This is a follow up article from the MHCLG webinar in January 2026, and the previous article by Dan Gordon, formerly of the HSRA team. “As authorities begin to apply the powers in practice, early delivery experience suggests that one stage of the process is proving particularly significant: the notice period…..Authorities that have progressed to this stage consistently report that it is often during the notice period that progress is made, sometimes without the need to proceed further.” 

Background 

In a previous article, “High Street Rental Auctions – From Theory to Practice” [2025 Summer Terrier], we set out the policy intent behind High Street Rental Auctions (HSRAs) and early indications of how the powers were beginning to influence landlord behaviour. At that stage, many local authorities were still in the designation phase, focused on building vacancy registers and considering where and how the powers might be used. 

Since then, a growing number of councils have progressed beyond designation and into delivery. As authorities begin to apply the powers in practice, early delivery experience suggests that one stage of the process is proving particularly significant: the notice period. 

While the legislation provides for progression to auction, experience to date indicates that the notice stage itself often plays an important role in shaping outcomes. This article draws together observations from recent engagement with local authorities, including discussion at the January 2026 MHCLG webinar, which focused on notice serving and auction preparation. It highlights how councils are approaching delivery, where challenges are arising, and considerations for authorities preparing to move into this phase. 

From policy intent to operational use 

HSRAs were introduced to address persistent long‑term vacancy on high streets across England. The policy intent was not simply to enable local authorities to auction leases, but to provide a permissive power that could support engagement, reset incentives, and help bring vacant premises back into use. 

As councils move into delivery, that intent becomes more tangible. In particular, the notice period represents the point at which HSRA shifts from a preparatory activity to an operational one. Once notices are served, statutory timescales apply, procedural accuracy becomes essential, and the possibility of an auction becomes a live consideration, rather than a theoretical outcome. 

For many authorities, this has marked the point at which HSRA moves from being a policy framework to a practical tool within wider town centre and regeneration activity. 

The significance of the notice period 

Early delivery experience suggests that the notice period is not simply a gateway to auction. Authorities that have progressed to this stage consistently report that it is often during the notice period that progress is made, sometimes without the need to proceed further. 

Once notices are issued: 

• statutory deadlines are established 

• expectations around letting become clearer; and 

• engagement with landlords tends to become more focused and time‑bound. 

In several cases, councils reported that engagement which had previously stalled resumed during the notice period itself. Discussions that had not progressed over extended periods were reported to move forward once the statutory process was initiated. 

This experience reinforces an important point: the effectiveness of HSRA does not lie solely in the completion of auctions, but also in its influence on behaviour earlier in the process. 

Authorities have also emphasised that outcomes during the notice period are closely linked to the level of preparation undertaken beforehand. Where groundwork had been completed thoroughly, the notice stage was generally reported to be more manageable. Where preparation was less complete, councils were more likely to encounter complexity or delay. 

HSRA Process Diagram

Preparing to serve notices 

Authorities that have progressed most smoothly into the notice period share a number of common characteristics. By the point at which notices were served, these councils had typically invested time in preparatory activity, including: 

• confirming vacancy and local benefit conditions, supported by a clear and auditable evidence base 

• establishing or refreshing vacancy registers, often informed by site inspections and local intelligence rather than desk‑based data alone 

• engaging internal colleagues early, including legal, estates, regeneration and communications teams; and 

• taking a selective approach, prioritising a small number of long‑term, high‑impact vacancies rather than seeking volume from the outset. 

Authorities reported that this preparation supported confidence in responding to representations, reduced internal bottlenecks, and helped manage procedural risk. Several councils noted that HSRA was most effective when treated as a targeted intervention aligned with wider regeneration priorities, rather than as a blanket enforcement measure. 

Indicative process flow: 

Designation → Evidence and data preparation → Informal engagement → Notice period → Negotiated outcome or auction preparation 

The notice period as an engagement stage 

A recurring message from early adopters is that the notice period functions most effectively when approached as a structured engagement stage, rather than solely as an enforcement step. 

Rugby Borough Council, Broxtowe Borough Council and Bassetlaw District Council highlighted the value of informal engagement with landlords ahead of formal notice serving. In these cases, HSRA was presented as a tool to support occupation and regeneration, with auction positioned as a potential outcome rather than a default objective. 

In practice, councils reported outcomes during, or shortly after, the notice period, including: 

• agreement of more realistic rental levels 

• commitments to fund refurbishment or essential works; and 

• revised terms enabling properties to be marketed or let. 

In some instances, premises returned to use without progressing to auction. Authorities involved did not view this as a failure of the power, but as an indication that it was operating in line with its policy intent. 

Case study: Rugby Borough Council 

Rugby Borough Council identified a small number of long‑term vacant units within its town centre, where previous engagement with landlords had not resulted in letting. Following designation, the council undertook informal contact with landlords ahead of issuing notices, setting out clearly how HSRA could apply. 

During the notice period, landlords re‑engaged, citing the clarity of statutory timescales and expectations as a key factor. In one case, revised rental terms were agreed alongside commitments to refurbishment, allowing the property to be marketed and let without proceeding to auction. 

The council highlighted the importance of early clarity and proportionality in supporting this outcome. 

Managing complexity during delivery 

Alongside positive outcomes, councils have also reported recurring challenges during the notice period. The most common issues related to: 

• complex ownership arrangements, including offshore ownership and layered interests 

• long or atypical lease structures; and 

• poor building condition requiring further investigation before letting could reasonably occur. 

These factors can increase the time and resource required during the notice stage, particularly where multiple interests must be identified and served correctly. 

Early adopters emphasised the importance of: 

• detailed record‑keeping and careful diarising of statutory deadlines 

• clear evidence of service and follow‑up communication; and 

• capacity planning across teams, especially where multiple notices are being progressed concurrently. 

Accepting that a degree of complexity is likely, and planning for it, was viewed as important in maintaining momentum. 

Preparing for auction in parallel 

Authorities also highlighted the value of preparing for auction alongside the notice period, even where they hoped this would not ultimately be required. 

Councils that began work early on drafting tenancy documentation, shaping permitted uses and considering marketing and operator interest reported that they were better positioned to proceed where notice serving did not result in landlord‑led letting. 

This parallel preparation reduced delays, supported internal assurance, and helped avoid restarting work if an auction became necessary. It also reinforced the seriousness of the intervention during engagement with landlords. 

Rethinking measures of progress 

Early delivery experience suggests that progress is not best assessed solely by reference to the number of auctions completed. Authorities instead highlighted a broader set of indicators, including: 

• reductions in long‑term vacancy 

• improvements in property condition 

• renewed landlord engagement; and 

• clearer expectations around letting and use. 

In several areas, these outcomes were reported before any auction had taken place. This supports the view that HSRA can operate as a preventative and enabling power, rather than solely as an end‑stage enforcement mechanism. 

Case study: Broxtowe Borough Council 

Broxtowe Borough Council adopted a deliberately selective approach, focusing on a small number of prominent long‑term vacant properties considered to be undermining confidence in local centres. 

By combining robust evidence, early engagement and parallel auction preparation, the council reported that the notice period itself prompted renewed discussion. In some cases, landlords responded by investing in repairs or marketing activity, avoiding the need for further intervention. 

The council emphasised the importance of targeting and credibility in supporting effective use of the power. 

Case Study: Bassetlaw District Council 

Bassetlaw District Council has used High Street Rental Auctions as a targeted tool to reduce long‑term vacancy across its town centres. Early engagement with landlords following designation helped reset expectations and prompt renewed action. 

Since designation 12 months ago, vacancy rates have fallen in key centres, including in Retford (from 8.16% to 5.78%), Worksop (from 19.86% to 17.12%) and Harworth & Bircotes (from 11.48% to 3.27%), with 30 previously vacant units brought back into use and a further 7 in legals. Much of this progress was achieved during engagement and notice‑led stages, without the need to proceed to auction. 

Next steps 

As more councils progress through notice serving and auction preparation, further delivery experience will continue to emerge. MHCLG will continue to share updates, case studies and practical support as this body of evidence develops. 

For authorities considering their next steps, early delivery experience highlights the value of: 

• investing time upfront 

• taking a targeted approach; and 

• treating the notice period as a substantive stage of delivery, rather than solely a procedural requirement. 

HSRA is increasingly being used not only as a statutory power, but as a structured mechanism for supporting engagement and clearer conversations about high street occupation. 

For further information or support, local authorities can contact: highstreetrentalauctions@communities.gov.uk