We have previously blogged about the introduction of mandatory rental auctions - see here and here - which give local authorities the power to grant leases of vacant high street properties to commercial tenants.

The new legislation is both novel and radical, with the potential to significantly impact the market for high street properties. However, a key question from the outset has been whether local authorities have the capacity and resources to run high street rental auctions (HSRA).

In response, the Department for Levelling Up, Housing and Communities (DLUHC) has recently announced that an initial fund of £2 million will be available to support local authorities who wish to run HSRA. 

Moreover, as well as funding, detailed guidance on how HSRA should be conducted will soon be published, which will reduce the administrative burden on local authorities and plug gaps in the existing legislation.

The announcement from DLUHC (link below) also addresses various other queries arising from its recent consultation, which we shall cover in future blogs.