Articles

If certain criteria are met, Councils can enforce these changes without consent of the Landlord and/or Mortgagee.

Key Details:

• Introduction of HSRAs: From 2 December 2024, councils can auction leases for properties left empty for over 365 days within a two-year period.

• Legislative Backing: This change is part of the Levelling Up and Regeneration Act 2023, further empowered by new legislation laid in November.

• Length of Lease: Councils have the power to auction a 1 – 5 year lease at their own discretion.

• Criteria: To be within the scope of the local authorities HSRA powers, the premises must:

1) Be situated on a designated High Street or in a designated town centre. This is determined by the Local Authority.

2) Be considered beneficial to the local economy society and/or environment.

3) Have been vacant for the entirety of the preceding year or 366 days in the preceding 2 years.

Kieran Edwards, Surveyor in SHW’s Professional team, says: Notices will need to be served upon owners before possession can be handed over. A £1 million pound grant has supplied by the Government to support the auction process, however the Local Authority has the option of requiring the successful bidder to pay for the legal costs involved with preparing the auction pack, including lease documents. Unfortunately for the Landlord, they will have to bear their own costs, including any works deemed necessary to bring the property up to the minimum standard of repair and energy efficiency.

“The change marks a contentious shift in power from landlords to local authorities. We are yet to see whether local authorities will actually exercise these powers, but we will be keeping a watchful eye in the years to come”.