Rugby Borough Council is set to become one of the first local authorities in the country to use new powers that allow councils to auction leases on long-term vacant retail units.

The move follows figures showing that nearly one in four units in Rugby town centre are empty, compared with the national average of one in seven.

How the lease auction scheme works

Under the scheme, any privately-owned shop left empty for more than a year within a two-year period could be subject to a lease auction. Landlords will be given an eight-week period to secure a tenant themselves or to appeal. If no resolution is reached, the Council can step in and invite bids from businesses to take over the property.

To support the scheme, the Council has introduced a vacancy register and has access to government funding of up to £75,000 per property to help bring empty units back into use.

A new tool to revitalise the high street

Council leaders have described the powers as a “legislative hammer” to deal with derelict high street premises. While the measure may only return a small number of shops to use at first, the intention is to demonstrate commitment and restore confidence in the town centre.

Opportunities for businesses

For local enterprises, the lease auction initiative could open up new opportunities. Start-ups and growing businesses may be able to secure premises that might otherwise have been unaffordable or unavailable. At the same time, reducing the number of boarded-up units could help to increase footfall and improve the overall shopping environment for everyone.

Although this initiative is beginning in Rugby, other councils may look to adopt a similar approach if it proves successful.

For more information, see the full article: https://www.bbc.co.uk/news/articles/c4g9385p063o