Guidance

New burdens payments for high street rental auctions: prospectus

Published 5 December 2024

Applies to England

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This publication is available at https://www.gov.uk/government/publications/high-street-rental-auctions-grants-for-local-authorities/new-burdens-payments-for-high-street-rental-auctions-prospectus

Summary 

Purpose: The new burdens payments will support all local authorities to cover the cost of applying the high street rental auction (HSRA) powers. It will follow the new burdens doctrine. 

Type of fund: Un-competed.

Eligibility: All local authorities in England.

Funding available: Up to £5,223 per high street rental auction undertaken.

Important dates:

Grant applications open: 15 January 2025

Deadline for applications: 14 January 2028, or until the burdens are met through a Spending Review bid or a Local Government Finance Settlement. You must apply for payment within the same financial year the HSRA is delivered.

Funding awarded: As soon as possible, on a rolling basis every 4 weeks.

Introduction 

High street rental auctions (HSRAs) are a new power for local authorities to require landlords to rent out persistently vacant commercial properties to new tenants. They allow local authorities to auction the rental rights of a commercial high street property that has been vacant for 366 days or more in a 24-month period. 

The new burdens payment is a non-discretionary payment covering the costs to local authorities to apply these new powers. This payment will offset the marketing, auction and legal costs incurred as a result of implementing the new powers. 

The HSRA fund is a separate grant that helps local authorities cover the cost of: 

  • outsourcing services to create a high street vacancy register  
  • refurbishing a unit that is subject to a rental auction

More details are available in the High Street Rental Auctions fund: prospectus.  

Fund objective 

To provide a grant to offset the net additional cost of delivering a HSRA. 

Who can apply 

All local authorities are eligible to apply and the indicative grant is available to cover the cost of a single HSRA. There is no limit to the number of auctions an authority can undertake during this award period. 

You can apply when you are ready to implement a HSRA. Grant requests must be made within the same financial year. 

Funding available 

A non-ringfenced revenue grant is available to cover the cost of delivering a HSRA. Funding will be awarded under Section 31 of the Local Government Act 2003 through a grant determination letter. 

The new burdens payment is expected to cover the following costs: 

  • administering and managing the auction process 
  • marketing and promoting the auction and property for lease 
  • issuing legal notices 
  • gaining access to the property 

We have consulted on the costs that amount to be a burden and expect this to be £5,223.  

If the HSRA does not enter marketing stage, local authorities can draw down £1,791 to cover legal costs if an initial notice has been served. They must: 

  • attest that an initial notice has been issued in accordance with the regulations 
  • confirm the address of the property subject to a HSRA 

If the HSRA enters marketing stage, local authorities can draw down the full £5,223 to cover the legal, marketing and auction costs. They must: 

  • attest that an initial notice has been issued in accordance with the regulations 
  • attest that the marketing period has been entered in accordance with the regulations 
  • confirm the address of the property subject to a HSRA 

Ideally grant payments will be requested within the same financial year in which the activities take place.

Roles and responsibilities 

The Ministry for Housing, Communities and Local Government will: 

  • provide the new burdens payment as per the principles set out in the new burdens doctrine 
  • establish and undertake post implementation monitoring and evaluation 

Local authorities can outsource delivery provided they retain overall responsibility for, and ensure compliance with, their legal obligations. These are set out in:

Apply for funding 

Applications for the new burdens payment will open on 15 January 2025. We will update this page with information on how to apply in due course

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