HIGH STREET RENTAL AUCTIONS To what extent can this approach solve the problems on the high street?

Simon Barry

Simon is a Director in Boyer’s Cardiff office. He joined Boyer in 2005 and helps to lead the Cardiff team. Simon is involved in a wide range of projects across different sectors including residential development (private and housing association), education redevelopment, primary health care provision and hospitality/leisure. He works in Wales and southern England and regularly provides development advice, site appraisals and promotion, as well as managing the submission of large-scale planning applications.

Simon asks if “new and innovative initiatives such as HSRAs offer a viable solution to reinvigorating these once-bustling areas and fostering a more dynamic, diverse presence?” 

The high street landscape 

A walk along your local high street today presents a marked contrast to its appearance a decade ago. Once characterised by an array of shops, restaurants and gathering spots, many high streets now face a growing number of unoccupied units. Foundations of the high street, such as Woolworths, BHS, Arcadia Group and Debenhams, have ceased trading, leaving voids in what were once vibrant town centres. While the causes are multifaceted – from the rise of e-commerce and the pandemic’s long-lasting effects to the cost-of-living crisis and shifting consumer habits – several variables have culminated in a high street landscape now defined by desolate stretches and deserted storefronts. 

A lifeline? 

In response to these nationwide issues, the government's inception of High Street Rental Auctions (HSRAs) aims to empower local councils to auction leases for long-term vacant retail spaces, offering a potential lifeline to urban centres facing economic decline. However, even with the introduction of new initiatives like HSRAs, it remains evident that the high street's future depends on more than just filling in the voids. 

It is right that the regeneration of our high street is a priority for the government: the vitality of a local high street has a significant knock-on impact on the broader economic and social value of our towns and cities. Waking up to the news of yet another prominent brand shuttering multiple stores has become an all-too-familiar occurrence. Could, then, new and innovative initiatives such as HSRAs offer a viable solution to reinvigorating these once-bustling areas and fostering a more dynamic, diverse presence? 

 High Street

But great minds from across retail, planning and regeneration have attempted to find a solution to the ‘perfect storm’ battering so amany of our high streets, and the failure to do so suggests that the solution is far from simple. For example, despite initiatives such as the Future High Streets scheme, which aims to support the regeneration of town centres, challenges persist. 

The suggestion by the government that ‘disengaged landlords’ are ‘sitting on empty properties’ further highlights the complexity of property investment. No landlord wants their investment to remain vacant while maintenance bills mount or the property falls into disrepair: most would welcome any alternative. 

But, as is demonstrated by the number of multinationals and independents closing on the high street, and the fact that one in seven high street units is empty, the state of the high street is ultimately at the mercy of supply and demand factors. Boyer has first-hand experience of this, and we are currently working for a number of clients regarding restaurants, pubs, coffee shops and general retail. We are aware that there are detailed considerations which need to be taken into account before any investment is made. 

The previous government’s introduction of Class E was a bold move, using considerable deregulation of the planning system to encourage high street regeneration, allow a wider choice and support local demand. While there has been some success in this, and it inevitably increases the flexible use, many properties remain empty. 

It seems unlikely, therefore, given the flexibility of change of use and the substantial marketing that is invested in such properties, that an auction could resolve their fortunes. There are many broad, complex and ever-changing factors at play, and the government’s priority for high street regeneration must be to address them. 

The ethos of ‘right to rent’ is a throw-back to localism – itself an ineffective gesture to offer power to local communities which, for a plethora of reasons, failed to deliver. 

I would question why a building which had been marketed for many months would attract interest at auction; whether landlords’ properties should be removed from their possession (albeit temporarily) when they have invested in both the bricks and mortar and the management and marketing of the unit, and how the new tenants would succeed where the professional landlord has failed. 

Furthermore, do local authorities have the resources to do so, in terms of skills and finances? The perilous state of local authority finances would suggest not. 

Conclusions 

With further high street closures imminent and an already barren desert of traditional retail outlets, the role of government, landlords, local authorities and communities in navigating these difficulties cannot be underestimated. 

Could HSRAs propose a promising opportunity for independent retailers and start-ups seeking affordable premises? Might they benefit hospitality ventures such as cafés, restaurants and bars, as well as enterprises like hair salons, gyms and co-working spaces? Feasibility remains doubtful. 

Ultimately, the high street’s revival depends on a delicate balance of innovation, investment and the ability to adapt to the evolving needs of consumers and businesses. Until this alignment is achieved, the fate of our high streets stands uncertain. Nonetheless, it is a challenge that deserves sustained focus and action from all stakeholders. 

Editor note 

MHCLG has prepared detailed information about the HSRA process for local authorities. See the slide for the opening reference. 

High Street Rental Auctions