Closed consultation

High street rental auctions

Updated 22 June 2023

Applies to England

Scope of the consultation

Topic of this consultation:

This consultation seeks views on matters that will form part of the High Street Rental Auction policy, introduced in the Levelling Up and Regeneration Bill. The consultation invites ideas on what the standardised lease arrangements should look like (composition and how clauses may operate), the spreading of costs of the High Street Rental Auction process, the application of Minimum Energy Efficiency Standard requirements, how the auction process should run, and the proposed new Permitted Development Right process.

Scope of this consultation:

The consultation covers the standardised leasing framework (composition and how clauses may operate), the spreading of costs of the High Street Rental Auction process, the application of Minimum Energy Efficiency Standard requirements, how the auction process should run, and proposed new Permitted Development Right aspects of the High Street Rental Auction policy.

Geographical scope:

These proposals relate to England only.

Impact assessment:

An impact assessment has been developed for the Levelling Up and Regeneration Bill.

The opinion of the Regulatory Policy Committee, which evaluates impact assessments, on the Levelling Up and Regeneration Bill was published on 19 July 2022.

Government is mindful of its responsibility under the Public Sector Equality Duty to have due regard to the potential impact of its proposals on people with protected characteristics. The purpose of the consultation is to gather evidence and seek views on the issues above. We invite views on the Public Sector Equality Duty in relation to all the questions in this consultation document. Any regulations brought forward as a result of the consultation would be subject to appropriate assessment.

Basic Information

To:

This consultation is open to everyone, though it is technical in nature and is primarily aimed at commercial landlords, tenant businesses, community groups and local authorities. We are keen to hear from interested parties from across the public and private sectors, and also welcome responses from the general public.

Body/bodies responsible for the consultation:

Department for Levelling Up, Housing and Communities.

Duration:

This consultation will last for 14 weeks from 31 March 2023 to 7 July 2023.

Enquiries:

For any enquiries about the consultation please contact: HSRAconsultation@levellingup.gov.uk

How to respond:

Responses to this survey must be provided using Citizen Space, an online platform designed for government consultation and engagement.
Please submit your online survey response via Citizen Space

For queries please contact - HSRAconsultation@levellingup.gov.uk

Glossary of terms

Term Definition
Agreement for lease A contract following the auction and prior to the lease in which obligations are placed on the landlord and tenant to allow a lease to be granted.
Auction The process by which a tenant and rental value will be selected. Various options and models of auction are being considered within this consultation.
Citizen Space The internet-based system where answers to this consultation can be submitted.
Consultation This document and associated process that allows parties to respond to and influence the more complex parts of the policy which are yet to be determined.
Government government as the central executive authority led by the cabinet.
High Street Rental Auction The process being consulted upon, by which a local authority will be able to auction a lease to a property that has been vacant for a required period.
Landlord The property owner, who may have a freehold or leasehold interest, with the rights to grant a lease to a property that may be subject to a High Street Rental Auction.
Lease The contract allowing a successful bidder to operate a business from the premises auctioned.
Levelling Up and Regeneration Bill (Bill) The Bill containing the primary legislation under which High Street Rental Auctions are introduced and set out in Part 10.
Local authority The council responsible for planning and regenerative efforts for a given high street in which a High Street Rental Auction could be used.
Minimum Energy Efficiency Standard A legal requirement for all commercial property to hold a specified level of energy efficiency, which may not apply to High Street Rental Auctions subject to this consultation.
Permitted Development Right A national grant of planning permission that allows certain building works and changes of use to be carried out without having to make a planning application.
Prior Approval It is sometimes necessary to obtain prior approval from a local planning authority before carrying out permitted development. See When is permission required, permitted development. This process affords local planning authorities the opportunity to consider likely impacts in relation to specified considerations (e.g., transport and highways).
Secondary legislation (regulations) The law created by ministers under the powers given to them under an Act of Parliament. The Levelling Up and Regeneration Bill will give ministers such powers; this consultation aims to inform the contents of secondary legislation made by ministers.
Tenant (successful bidder) The winner of the auction who becomes subject to the agreement for lease and lease in operating a business from the auctioned premises.
Use Class Common uses of land and buildings are grouped into classes. Uses can move within a use class without the need for a planning application.
Vacancy A term describing properties that do not have a tenant in place and/or are not currently operational as businesses. Many may be boarded up.

Introduction – tackling vacant high street property

How this document should be used

1. This consultation document and the annexes attached are intended to aid the respondent in their completion of the consultation questions on High Street Rental Auctions and provide contextual and explanatory information which relates to the questions. The consultation can only be responded to on Citizen Space, and we will not be able to accept responses via email.

Policy background

2. Prolonged vacancy of shops and buildings is a blight on our high streets. There will always be some vacancy as a sign of natural business churn and high street units that are in the process of being filled – in 2019, Glide found that approximately 172,000 commercial properties were vacant. In 2021, however, figures from Whythawk, the open data specialists, suggested that over 8 in 10 of these vacant properties have been empty for more than two years, and over 1 in 5 have been empty for more than four years.

3. Whilst government has taken successful action, such as the introduction of Use Class E to enable more flexible use of existing buildings through its 2020 reforms and has resultingly reduced vacancy in each of the last five quarters, vacancy remains high in many areas. High vacancy rates significantly impact a place’s economic performance. They strip economic opportunity from towns and high streets. They directly and negatively affect footfall, risking businesses shutting down, more jobs being lost, people moving away from high streets, and lower economic activity in the heart of communities.

4. Wider regional economic underperformance is also clearly linked with high vacancy rates. Some of the worst affected areas include Manchester, North-East Lincolnshire, Luton, and East Staffordshire. In these regions, the vacancy rate ranges from 20% to as high as 28%. Unemployment rates are also higher than the national average: in Manchester, the unemployment rate as of September 2022 is 6.7%, while in Luton, it is 4.7% – well above the national average of 3.8% in 2022. Moreover, between 42% to 56% of vacancies in these regions have been vacant for more than four years.

5. Vacancy also ruins the look and feel of an area – boarded-up empty shops often become targets for vandalism, graffiti and anti-social behaviour. Taken together, the economic and physical decline caused by high street vacancy entrenches economic underperformance and undermines pride in place – with more derelict high street shops and disused town centre spaces.

6. Tackling this problem by regenerating our high streets and cracking down on this anti-social behaviour is therefore at the heart of the government’s levelling up agenda. We want to breathe new life into once-bustling town centres and transform them into vibrant places where people once again want to shop, live, work and relax – restoring local pride as we level up across the country.

High Street Rental Auctions

7. In the Build Back Better High Streets Strategy), published in July 2021, and the Levelling Up White Paper, published in February 2022, we announced our intention to explore what policy solutions could address empty shops and offices and to give local authorities the power to tackle vacancy rates.

8. As part of the Levelling Up and Regeneration Bill, introduced to Parliament on 11 May 2022, the government is introducing High Street Rental Auctions, a new power for local authorities to require landlords to rent out persistently vacant commercial properties to new tenants, such as local businesses or community groups. More detail on the policy proposal can be found in the ‘High Street Rental Auctions: Delivery Principles’ section of this consultation and at Annex A.

High Street Rental Auctions: Delivery principles

9. High Street Rental Auctions will be a permissive power for local authorities which aim to tackle the problem of persistently vacant property on high streets by empowering places to bring vacant units back into use. As an addition to a range of tools local authorities might use when attempting to regenerate an area; they will seek to increase cooperation between landlords and local authorities, and to make town centre tenancies more accessible and affordable for tenants, including small businesses and community groups.

10. High Street Rental Auctions will allow local authorities to auction the rental rights of commercial high street property that has been vacant for longer than 12 months in a 24-month period. Successful bidders will enter into an agreement for lease with the landlord upon completion of the auction, and then a lease of between one to five years following completion of any pre-tenancy works.[footnote 1]

11. The government recognises that many landlords work constructively with local authorities to fill vacant property. The use of High Street Rental Auctions will be at the discretion of the local authority and is not intended to apply in the case of properties whose landlords are actively seeking to fill their premises – rather where vacancy rates are a significant issue and landlord cooperation is low. Equally, we recognise that there are many good reasons for a property being vacant including plans for its redevelopment. In these circumstances, we encourage local authorities to work with landlords on alternatives such as meanwhile use or a shorter-term High Street Rental Auction lease.

12. The government is also aware that some local authorities struggle to get property owners invested in regeneration efforts. They may, for example, prefer to wait for an upturn in demand and higher rental values, rather than commit to a lower rent. High Street Rental Auctions will therefore benefit areas that experience less cooperation between local government and property owners, by incentivising landlords to lease property without the need for a High Street Rental Auction to be used.

13. Given their relative short-term nature, High Street Rental Auctions will allow local authorities to take light-touch action where regeneration efforts have stalled without needing to resort to the use of compulsory purchase powers. They will also seek to mobilise the commercial rental market preventing units from sitting empty for long periods of time because market rent expectations are not in line with what the market is actually prepared to offer.

14. In designing the High Street Rental Auction policy and its accompanying processes we have been guided by simplicity, efficiency, and affordability – principles chosen to ensure that the policy does not become overly burdensome for local authorities, to safeguard parties, and to keep costs and resource requirements as low as possible. Questions relating to these principles are included within this consultation.

15. In addition to the interests of local authorities we have also given consideration to the interests of investors. Whilst vibrant and bustling town centres are beneficial to local authorities and investors alike, we have aimed to ensure that the actions afforded to local authorities are proportionate to this aim and do not inadvertently deter commercial property from continuing to be an active area for investment.

16. Most commercial property on high streets and in town centres will be in scope for High Street Rental Auctions. The policy will not apply in remote or unconcentrated streets or areas where other premises undertaking a typical high-street use are not present. We are specifically excluding heavy industrial, warehouses, and residential property from High Street Rental Auctions, both in terms of application as well as potential use of a property under High Street Rental Auction notice. A full list of uses of premises that fall under the definition of high street use for the purpose of High Street Rental Auctions can be found in the Bill.[footnote 2]

17. Most high street premises fall under the new Commercial, Business and Service use class (E), including retail, some hospitality and leisure uses, and offices, which may benefit from High Street Rental Auctions. Planning permission is not required to switch between uses within this use class. Where a bidder proposes a suitable high street use that is not in use class E, such as community halls and public houses, or the property is not in the same use class as that proposed by the bidder (and a planning application would ordinarily be required), we propose that a new Permitted Development Right would permit the change of use without the need for a planning application. This, in turn, would allow High Street Rental Auctions to offer a range of uses as set out in the Bill,[footnote 4] dependent on the needs of each high street.

18. A flowchart setting out how the policy works in practice can be found at Annex A to this consultation document.

Encouraging cooperation between landlords and local authorities

19. As stated above, many landlords are proactive and want to fill their shops. High Street Rental Auctions are not designed to target these landlords. Instead, we want to see them used in places where vacancy rates are a real problem and there is little cooperation between landlords and local authorities. We do not expect High Street Rental Auctions to apply to properties with proactive landlords unless those landlords are struggling to find a tenant and would benefit from the High Street Rental Auction process and local authority support.

20. In the instance that a High Street Rental Auction is used, a number of safeguards have been (or are proposed to be) put in place to protect landlords; these are set out at Annex B.

21. We will be looking for local authorities to work with landlords in the rental auction process. Much of the process – for example, the auction model put forward for consultation – has been designed to allow landlords to input into the decisions that determine the details of the lease and who the tenant will be.

Where a landlord does not engage with the local authority

22. In addition to engaging with landlords, we have also engaged with local authorities and stakeholders who reported that in some cases non-cooperative landlords are frustrating regeneration and repurposing efforts.

23. We expect local authorities to make reasonable efforts to contact the landlord to discuss the property before beginning the High Street Rental Auction process, however, we are aware of cases where landlords have been unwilling to cooperate.

24. In these cases, under the measures, landlords will be allowed an eight-week grace period to find a tenant following notification (via notice of intent – referred to as an ‘initial notice’ in the Bill) that a local authority is intending to undertake a High Street Rental Auction. If landlords fail to let within the eight-week grace period, the local authority can (subject to any appeal) move to the next stage of arranging a rental auction. Following the rental auction, where the landlord has not engaged with the local authority in the process, the local authority will (on behalf of the landlord) also have the ability to enter into an agreement for lease and lease with the successful bidder.

Safeguards for landlords

25. We are keen to make sure that in addressing vacant property, High Street Rental Auctions do not disproportionately impact the rights of landlords, many of whom we hope will be actively cooperating with the local authority. For this reason, the following protections are built into the process:

  • once the local authority has served a notice of intent to carry out the High Street Rental Auction process, there will be a grace period of eight weeks for the landlord to demonstrate they have let their property successfully by showing a completed letting agreement for a period of at least one year for a high street use
  • landlords have a right to appeal against the final notice. These grounds are set out in the Bill and include circumstances where the imposition of a lease upon the landlord would be disproportionate or at odds with the intention of the policy (for example, where redevelopment is planned or where the landlord intends to run a business from the premises)[footnote 4]
  • local authorities will be required to have regard to representations made by the landlord on specified aspects of the rental auction process (preferences over process) and terms of the lease (those which are flexible terms of the lease)
  • the process for deciding the successful bidder at auction will allow for input from a landlord
  • the tenant will also be required to give a rent deposit
  • the landlord will also have its usual legal remedies against the tenant, such as court action or forfeiture, should the tenant not comply with the terms of the lease

26. More details on the safeguards for landlords in the High Street Rental Auction process are set out at Annex B of this document.

Costs and burdens

27. High Street Rental Auctions have been designed to minimise costs for all parties involved in the process. For example, together with industry experts, we are designing a standardised lease framework (including an agreement for lease and lease) to be used for lettings following a High Street Rental Auction to minimise the work needed by local authorities and to instil transparency, consistency, and fairness. Many aspects of this lease framework are included within the consultation.

28. As part of the standardised lease framework, we are considering setting a minimum standard (relating to the physical state and condition) to which the landlord must ensure the property is compliant. In considering this standard, we have tried to strike a balance between making sure the property is safe, stable, secure, and with any significant occupational risks removed, so that the premises are capable of being let; whilst also minimising the costs to the landlord so far as is possible. The details of this standard are being consulted on. Burdens on landlords may also be further reduced through the disapplication of Minimum Energy Efficiency Standards for the duration of the lease subject to this consultation. Further details on the minimum standard are set out at paragraph 93 onwards, in the section of this consultation titled ‘The minimum standard’.

29. Despite these efforts, there may be some unavoidable costs to the parties, such as those related to bringing the property up to the minimum standard or the expense of the auction itself. We envisage that these will fall on the landlord and tenant respectively.

30. After the consultation closes on 7 July 2023, we will:

  • analyse the results and publish the key findings
  • use the findings of the consultation to develop further policy detail which will be used to inform secondary legislation

31. This consultation document contains all the necessary information for you to complete the consultation. We advise you to keep this document to hand and refer back to the relevant information in each section when completing your consultation response.

32. Your consultation response should be completed on Citizen Space. Responses via any other method (e.g., email or letter) will not be accepted.

The High Street Rental Auction Process

Determining when to use a High Street Rental Auction

33. Under the Bill, the local authority will be responsible for designating their high street(s) or town centre(s) where a High Street Rental Auction could be used. When the local authority comes to use a High Street Rental Auction for a particular property (falling in a designation), it must also be content that the property is suitable for use that is ordinarily found on a high street.[footnote 5]

34. In designating a street or area in which a High Street Rental Auction could be used the local authority must be satisfied the street or area is important to the local economy because of a concentration of premises undertaking typical high-street uses on the street or area.[footnote 6]

35. The local authority must also be satisfied that the particular property has been unoccupied for 12 months within a 24-month period, and that the occupation of the property for a suitable high-street use would be beneficial to the local economy, society, or environment.[footnote 7]

Notifying the landlord

36. The local authority will then be able to issue an initial notice to the landlord.[footnote 8] Once this notice is issued, the landlord will have an eight-week grace period to find a tenant. If the landlord successfully finds a tenant, the landlord may only enter into a letting agreement if they have the consent of the local authority. The local authority must give consent if the term of the letting is more than one year and is likely to lead to high street use.[footnote 9]

37. If the vacant property remains unlet after the expiry of the eight-week grace period, the property can be put under High Street Rental Auction (final) notice,[footnote 10] subject to the landlord’s rights of appeal.[footnote 11] Once under a final notice, the landlord may not grant a lease or licence without the consent of the local authority.[footnote 12]

The auction

38. A rental auction is described in the Bill as ‘a process for finding persons who would be willing to take a tenancy of the premises further to a contract under section 189 (of the Bill) and ascertaining the consideration that they would be willing to give in order to do so.’

39. We anticipate that the auction process regulations and guidance will need to set out in some detail the key aspects of the rental auction. This is so that:

  • all stakeholders understand the process
  • local authorities know what is required of them in arranging the rental auction
  • landlords know what is required of them, and they are assured sufficient safeguards are in place

40. We have designed the rental auction in a way that allows the landlord to be involved where possible, while maintaining other policy objectives – for example, having a relatively quick and effective scheme. We have set out landlord involvement in the process at Annex B: Safeguards for landlords.

41. Many auction types use the ‘highest bidder wins’ mechanism to decide the successful bidder. However, this may not be the most appropriate for High Street Rental Auctions because lower bids have other factors that may be more valuable. For example, a lower bidder might:

  • have a stronger business model (which reduces the risk for the landlord and may also potentially increase how long the tenant stays in the property)
  • diversify the high street (e.g., the highest bidder might be a newsagent but as there are already 3 newsagents on that street, another bid for a restaurant maybe more desirable)
  • increase community cohesion (e.g., a community group using the property to run a youth club)
  • help boost the local economy as the bid is from a local business

Consultation questions for the auction process

42. The purpose of this part of the consultation is to seek views about the auction process and how successful bidders might be identified, which will inform the contents of the regulations.

43. We have been considering some options relating to how the auction process could operate, which are set out at Annex C of this document.

Level of detail of non-statutory guidance

44. Regulations will set out the mandatory elements of the auction process as informed by this consultation. They will be set at a level which ensures that sufficient safeguards for landlords and other parties are in place.

45. We will also produce guidance to help stakeholders, and in particular local authorities, to follow the regulations. We need to decide how far this guidance goes for prescribing any non-statutory elements of the process.

46. For example, we could produce more limited guidance that focuses on the mandatory steps of the process, reflecting only what is prescribed in the regulations. Local authorities could then decide the more detailed aspects of the process, to best fit their properties and circumstances.

47. Alternatively, or in addition to the more limited guidance described above, we could produce more detailed step-by-step guidance about the process for local authorities and other parties to follow. The process would be designed by the Department for Levelling Up, Housing and Communities, for local authorities to use should they wish. This guidance would go beyond the mandatory steps prescribed in the regulations; following the non-statutory elements in this alternative proposed guidance would be optional for local authorities.

48. At present, we believe it may be of greater benefit to stakeholders for the Department of Levelling Up, Housing and Communities to produce detailed guidance that sets out both obligations and mandatory steps, as well as detailed suggestions of how to conduct the process. We believe this might be preferable because it may:

  • reduce the amount of work for local authorities when designing and making decisions about the process, which could save resource
  • reduce the training burden for local authorities, as they simply need to follow a detailed step-by-step process
  • reduce the amount of external professional advice (e.g., legal advice) each individual local authority or external agency will need to seek when applying the auction process to a specific property. This will reduce the risk of local authorities’ decisions being challenged

Level of guidance and prescription of process questions

1. On a scale of 1 to 10, how prescriptive should the legislation and guidance be for the auction process overall? [sliding scale 1-10]

1 = not very prescriptive, only mandatory elements should be set out in guidance
10 = very prescriptive. All aspects of the process should be set out in step-by-step guides for local authorities and other parties to follow.

Auction packs

49. Auction packs usually contain basic information on the property (e.g., address, photos, guide price) and legal information (e.g., tenure, search results). This information can affect the value of a property, and for this reason providing this information helps bidders to pitch their bid.

50. When a property is sold at auction, the legal pack is prepared on behalf of the landlord, by the landlord’s solicitor. The marketing brochure is most often prepared by the marketing agent (either the auction agency or the estate agent) on behalf of the landlord.

51. In the case of High Street Rental Auctions, the local authority will be responsible for putting together the auction packs and will (ideally) include particulars supplied by the landlord (e.g., replies to enquiries, service charge information), and information obtained from other sources (e.g., Land Registry and/or search providers).

52. If the landlord is not engaged in the process or does not supply this information:

  • the landlord may commit an offence under clause 195 of the Bill
  • the legal pack will contain only the information the local authority has managed to obtain
  • the local authority could seek to extend time limits for the process under clause 198 of the Bill

53. We need to consider how to balance the need to provide bidders with as much relevant information as possible with:

a. what a local authority is reasonably able to prepare within the time frame available (on current timetabling this would be 3–4 weeks, rising to 5–6 weeks if the local authority is prepared to start this work while there is a risk of the landlord appealing the process).

b. the costs associated with obtaining this information.

54. We consider that the following information should be included (if possible) for prospective bidders as part of the auction packs:

Marketing brochure:

  • location
  • property description
  • tenant characteristics
  • photos of the property
  • floorplan
  • overview of auction process
  • business rates
  • service charge
  • insurance costs
  • contact details of relevant agencies and partners involved in the auction (e.g., the local authority, the auction agency, the commercial property estate agent)

Terms of tenancy

  • agreement for lease (attaching copy of the lease)

Evidence of ownership

  • title document (Land Registry)
  • title plan (Land Registry)
  • deed(s) for the property (if unregistered and available)

Information about the property

  • local authority search(es)
  • replies to enquiries

Information about the local area

Note: we have not included other searches that may be obtained, on the basis that: they may be dependent on the locality and nature of the property (e.g. coal mining); the bidders could commission them themselves (e.g. chancel repair liability check, environmental search); and the bidder may be satisfied by the obligation on the landlord to bring the property up to the minimum standard – see the section below under standardised lease.

  • drainage and water search / flood risk

Health and safety

If available at this stage: note that some of this information may only be provided once the landlord has brought the property up to the minimum standard – see the section below under standardised lease.

  • electrical Installation Testing Certificate
  • water and gas (if present) safety certificate(s)
  • fire safety certifications and Fire Risk Assessment
  • asbestos management plan
  • test certification for present mechanical, electrical, or life safety systems

Energy efficiency (if available)

  • energy performance certificate

Information about the auction, and terms of the transaction

  • Special conditions
  • General conditions of sale or standard auction contract

Auction pack questions

Please consider the list of information we propose to include in the marketing brochure and the legal pack. This can be found in the High Street Rental Auction Consultation Document under the ‘Auction packs’ chapter.

2. Will it be possible to provide this type of information for the auction pack within the timing window (minimum of 3-4 weeks) for the auction process? [Single choice]

  • Yes
  • No
  • Don’t know

3. From the above list of items to be include in the pack, are there any items that could be removed? [Multiple choice]

4. Is there anything missing from the auction packs, which you think bidders would want to see? If so, please explain what is missing and why it should be included. [Free text box]

Marketing process

55. Adequate marketing of High Street Rental Auction properties is important for several reasons:

  • to attract as much interest from potential tenants as possible
  • to ensure the landlord receives the best possible price for the property (good marketing maximises the interest for the property, which increases the bidding competition, in turn increasing the price)
  • to give a fair representation of the property at the standard to which it will comply at the start of the tenancy. As works on the property may not be complete by the marketing period, the marketing brochure will set out the minimum standards the property should be compliant with (according to the regulations) at the start of the tenancy

56. The regulations will set out expectations and requirements to market the property effectively. The non-statutory guidance may then offer additional strategies that should be considered to market the property.

57. Local authorities will choose whether to conduct the marketing process in-house, or to outsource the process to an external agency (e.g., a commercial property letting agency). Many local authorities will have adequate skills and experience of property marketing to run the process and will therefore prefer to run the process internally. However, those with more limited in-house skills and capacity, may prefer to outsource the marketing.

Marketing process questions

5. Please use the grid below to indicate which of the following marketing strategies should be:

  • Mandatory (should be specified in the regulations)
  • Recommended or optional (for use in the non-statutory guidance)

[Drop down menu options: ‘Mandatory,’ ‘Recommended/ optional,’ ‘Don’t know’]

  • Advertise the property on the internet (but not mandated on specific websites)
  • Name specific websites to advertise the property on (e.g., Rightmove)
  • Local authority to list all potential High Street Rental Auction properties on their website (any property that has been served an initial notice)
  • Promote the property using social media
  • List the property in local newspapers
  • Minimum length of time the property should be marketed for
  • Targeted marketing using local business and organisation membership groups (e.g., Business Improvement Districts)
  • An offer for potential bidders to view the property
  • Professional photos of the property
  • A floor plan
  • A To Let board outside the property

6. What should be the minimum marketing period for each High Street Rental Auction property? [Single choice]

  • Less than 2 weeks
  • 2-4 weeks
  • More than 4 weeks
  • Don’t know / don’t have a preference
  • Other (please specify) [Free text box]

Reserve price

58. We are considering whether a reserve price should be used in the High Street Rental Auction process. If a reserve price was used, it would be set by a local authority (in line with guidance for how the reserve should be calculated).

59. A reserve price would require that if the set (reserve) price (being a minimum rental bid) is not met following the auction, the landlord is not required to enter into the leasing arrangements.

60. For the auction element of a High Street Rental Auction, we propose there should be no reserve price. This is because we believe any benefits from having a reserve (namely in helping bidders pitch their bid and protecting the landlord from lower rental price offers) are outweighed by the negatives. These include that reserve prices:

  • reduce demand
  • introduce complications around deciding how they should be set
  • add to time pressures, owing to extra work calculating them
  • introduce non-market influence on the final rental price (potentially undermining the policy intent of aligning the achieved rental price with the market price)
  • may deter small business or community groups who might become priced out

Reserve price questions

7. Should there be a reserve price for properties that are subject to a High Street Rental Auction? [Single choice]

  • Yes
  • No
  • Depends on the property
  • Don’t know

8. If a reserve price was used, how should the reserve be set? [Single choice]

  • Based on external valuation advice
  • Local authority discretion
  • Formula-based approach
  • Other (Please specify) [Free text box]
  • Don’t know / don’t have a preference

Proposed auction option

61. Please read the description of how the proposed sealed bid auction process may run in Annex C.

Preferred auction option questions

9. Do you agree that the proposed sealed-bid auction process outlined in Annex C should be used as the auction process for High Street Rental Auctions?

  • Yes
  • No
  • Don’t know / no preference

10. [If no] How do you propose the auction process should run? [Free text box]

Proposed auction process – sealed bid

Streamlining the process

62. Please consider how the proposed sealed-bid auction process works in practice by reviewing Annex C of this document before responding to the questions on Citizen Space.

63. To make sure the auction process is as effective as possible, the process should contain all the necessary steps to achieve the policy aims, whilst making sure not to overburden the different parties involved. Particularly, we do not want to burden local authorities (through an overly intensive process), as this may deter local authorities from using High Street Rental Auctions.

Streamlining the process questions

11. [Local authorities only] Do you consider the process as it currently stands as too burdensome for local authorities?

  • Yes
  • No
  • Don’t know

12. Are there any ways in which the process might be streamlined or simplified (especially for local authorities)? If so, please specify. [Free text box]

Outsourcing options

64. There are a range of options for how the auction process might be delivered. These include:

  • local authorities running the process in house
  • estate agents who have experience of commercial property
  • chartered surveyors or commercial agents
  • other parties such as solicitors or third sector organisations that may potentially be able to run the process

65. There are different options for who could run each auction process:

66. Local authorities

Local authorities could run the process internally. This may potentially keep costs down both for the local authority, and other parties involved in the process. However, some local authorities may not possess the necessary skills and capacity needed to run the process as required by the legislation.

67. Outsourcing

Local authorities may wish to outsource the process. This may offer superior value for money as dedicated specialist resource can be secured to provide the service, especially for certain local authorities that lack the internal capacity or expertise. For ‘Sealed-bid auction’ and ‘tender process’ (see Annex C) agencies could include:

  • estate agents with experience of commercial property. We expect estate agents to have a relatively low-cost base and therefore be more competitive in terms of fees
  • chartered surveyors or commercial agents. These vary considerably in size and coverage and are likely to bring a greater level of expertise and knowledge. They may, however, be more expensive than estate agents
  • other parties such as solicitors or third sector organisations – although they may have less expertise in marketing and appropriate systems

68. The auction process should be simple. Because capacity and capability within local authorities varies, it is likely that local authorities will have differing preferences of how to run the auction. We are therefore proposing that local authorities should have the option to outsource the process, giving them more options to keep costs down and access expertise where needed.

Outsourcing questions

13. Do you agree the local authority should have a choice whether to outsource the process?

  • Yes
  • No
  • Don’t know / don’t have a preference

The standardised lease

69. High Street Rental Auctions are auctioning the right to exclusively use commercial property for a high street use for a fixed period.

70. Those participating in the auction are therefore bidding for a new lease of the property rather than the purchase of a freehold (or existing long leasehold) interest in the property.

71. The successful bidder at auction will enter into two legal agreements with the landlord.

i. The first is the ‘contract for tenancy’ as it is referred to in the Bill, which is more commonly referred to in the property industry as an ‘agreement for lease.’ This is catered for in the primary legislation because the landlord may be required to carry out works to bring the property up to a minimum standard before the lease can be granted. It also allows the tenant to seek consent from its landlord to fit out works and, once consent is obtained, may provide the tenant with an opportunity to undertake some or all of its fit out works before the lease is granted.

ii. The second is the lease itself (or more formally referred to as a ‘tenancy’), which will set out the specific obligations on the tenant and landlord during the term of the lease.

72. Typically, commercial leases are agreed between a landlord and tenant and often with legal support, in a process that can take several months. It is not unusual for leases to have between 50-100 clauses that set out the specific obligations of both parties. Leases are usually adapted to suit the nature of the property, the type of business that will occupy it, and the specific circumstances of the landlord and tenant that enter the lease.

73. We wish, however, to provide for a standardised framework for the agreement for lease and lease for the following reasons:

  • to ensure consistency and fairness in the High Street Rental Auctions process
  • to ensure a relatively quick process (by avoiding protracted negotiation), as part of making sure that vacant high street property is occupied as soon as possible
  • given the need for local authorities to be able to run the process efficiently and effectively, particularly where a landlord does not engage or is un-cooperative

74. The Bill details some of the key terms of the lease.[footnote 13]

  • the amount of rent payable by the tenant, as this will be determined through the rental auction
  • the length of term for the lease, which will be not less than one year, but will not exceed 5 years[footnote 14]
  • the lease will not benefit from security of tenure under the Landlord and Tenant Act 1954, part II[footnote 15]. This means the lease will be for a fixed period and will not continue automatically past the term end date (like other business leases which do have security of tenure)
  • the ‘high street use(s)’ (as defined in the Bill)[footnote 16] which the tenant is permitted to use the property for. This must be prescribed by the local authority ahead of the auction

75. This consultation is not therefore focused on rent, length of term, the exclusion of security of tenure under the Landlord and Tenant Act 1954, and permitted use, but on other terms which are typically found in these legal agreements (including the terms which are set out at Schedule 17 of the Bill, which the lease must make provision for).

76. Further details of the leasing framework will be set out in regulations. It is envisaged that these will include standard forms of the legal agreements which the local authorities can use.

77. Early stakeholder engagement with landlords, tenants, and local authorities has revealed the need for some of these clauses, given their nature, to be flexible (to some degree) rather than fixed, with local authorities working with the landlord to select the most suitable clause from a range of options. The Bill requires the local authority to have regard to any representations made by the landlord on these legal agreements (insofar as the local authority has a discretion).

78. For example, we can see the need for flexibility in the case of a service charge regime (see service charge section below). We will also look to allow flexibility where this may allow more preferable terms, for example, with break clauses. Given the relative short-term nature of High Street Rental Auction leases, there will be no break clauses included in the lease by default. However, it will be possible for a landlord to insert a tenant’s break clause at their discretion, should they wish to make the leasing terms more desirable to encourage bids. Therefore, while we consider this clause straightforward, there will be some element of flexibility.

79. We consider some elements of the lease can be fixed, particularly where they are standard features of the lease (and usually uncontroversial in a commercial lease negotiations). We therefore do not propose to consult on these elements. These are as follows:

Proposed Fixed Items

  • Rights granted to the tenant (we have said this is fixed, although some adaption may be required on a case-by-case basis)
  • Rights reserved to landlord
  • Interest on late payments
  • Value Added Tax treatment of sums payable under the lease
  • Tenant’s obligation to pay outgoings relating to the property
  • Tenant’s obligation to pay business rates relating to the property
  • Ability of landlord to serve repair notices, where the tenant fails to keep the property in repair
  • Tenant obligation not to commit a nuisance
  • Tenant’s obligation in relation to compliance with statutory requirements
  • Tenant’s insurance duties (we have said this is fixed, although some adaption may be required on a case-by-case basis depending on who insures the property)
  • Tenant’s obligation to yield up
  • Encroachment and rights – tenant helping to preserve rights enjoyed by the property
  • Tenant’s obligation to pay landlord’s cost
  • Tenant’s obligation to comply with regulations
  • Landlord’s obligation for quiet enjoyment
  • Damage to premises – rent suspension and termination rights

80. We also envisage tenants to pay business rates as would be the standard arrangement in any other commercial lease.

Consultation questions for the agreement for lease

Costs of works to the property

81. There will be costs associated with works that are required to bring the property up to the minimum standard (see page 27, setting out in more detail the proposals around the minimum standard). We envisage the costs of these works will fall on the landlord.

82. Beyond the minimum standard, there may also be the cost of fitting out the property for a particular high street use - for example, as a retail shop or café. We envisage the costs of these works will fall on the tenant.

High Street Rental Auction costs

83. There will be costs incurred as part of the High Street Rental Auctions process.

84. This includes costs associated with the following activities which the local authority is likely to have to incur upfront:

  • the cost of surveying the property (if the local authority choses to do so) at the outset to assess its suitability for the high street use, which will be specified in the High Street Rental Auctions notices and ahead of the auction
  • surveying the property (if needed) to assess if any works are required by the landlord to bring the property up to the minimum standard
  • marketing of the property (including agency fees where the local authority outsources this work)
  • running of the auction (including agency or auction fees where the local authority outsources this work)
  • legal input in preparing the auction pack and granting the agreement for lease (and possibly also the lease)
  • searches and surveys which will be included in the auction pack
  • preparing a schedule of condition before the lease is granted

85. The local authority may decide to do some of this work in-house (through its own legal or surveying departments). Alternatively, it may decide to outsource some of this work to an external firm.

86. We are considering how to determine who is liable for these costs, particularly those that will be incurred by the local authority upfront as part of the High Street Rental Auction process. The question is whether clear provisions should be made as to who is liable to pay for which part of the process.

87. Other parties involved in the High Street Rental Auction process may also incur costs for which we do not intend to consult:

  • bidders – surveying or legal input in carrying out due diligence
  • successful bidder – surveying or legal input in carrying out due diligence and then completing the legal agreements
  • successful bidder – costs from fitting out the property for a particular high street use, for example, as a retail shop or café (see paragraph 82)
  • landlord – surveying or legal input for participating in the High Street Rental Auction process
  • landlord – costs associated with works that are required to bring the property up to the minimum standard (as set out in the upcoming section titled ‘The minimum standard’, see paragraph 93)

88. We consider each of these parties should pick up their own costs in this regard and do not therefore propose to consult on these aspects of costs.

High Street Rental Auction cost questions

14. Who should pay the costs associated with the following?

  • Surveying the property
  • Marketing
  • Running the auction
  • Solicitor’s fees (incurred by a local authority) for preparing the auction pack and preparing the legal agreements and completing these with the successful bidder
  • Searches and surveys to be included in the auction pack

Landlord works

89. Some buildings in the scope of this process may be dilapidated and unsafe.

90. Ordinarily, any works required before the tenancy begins are negotiated between tenant and landlord. However, to avoid unreasonable negotiation periods or disagreement, we are considering setting a standard to which the landlord must ensure the property is compliant.

91. In considering this matter our aim is to strike a balance between making sure the property is in a standard which is safe, stable, secure, and with any significant occupational risks removed, so that the premises are capable of being let, whilst minimising the costs to the landlord so far as is possible. The standard should also allow a tenant to undertake a fit out and conduct business.

92. The standard is set out below, please read this standard when answering the questions in this section of the consultation.

The minimum standard

93. We propose that under the terms of the contract for tenancy (agreement for lease), the landlord may be required to carry out pre-tenancy works, whether in or outside the tenant’s demise (the area of the property covered by the lease), to make sure that the premises to be used by the tenant are in a condition which is safe, stable, secure, and with any significant occupational risks removed or managed, by which we mean:

  • there can be no significant water ingress or leaking pipework, no unstable or loose elements which may fall and cause harm
  • all internal doors, and external doors (used to access the premises), are capable of operation for safe ingress/egress
  • all external windows are capable of operation (where so designed) for ventilation or escape in an emergency
  • the interior of the premises will be clear from debris, vermin, significant deviations from plane
  • all fire safety requirements for a vacant building must be in place, with fire/smoke detection operating and certified, fire doors and compartmentations in a condition supported by a Fire Risk Assessment
  • mains water and electrical supplies, should be connected, certified as safe, or capable of re-connection without significant expense to the tenant
  • gas if present should be connected, certified as safe, or capable of re-connection without significant expense to the tenant
  • toilet and hand washing facilities should be provided and are operational and capable of free-flowing discharge to a mains drainage connection
  • shop fronts should be provided with glazing, frames and entrance doors which are intact, sound, and operational
  • there should be no fungal decay, or mould growth which presents a risk to, respiratory health, or the structural integrity of the property

94. The landlord will also be required to provide certain information, including:

  • any present mechanical, electrical, or life safety systems will be provided with test certification confirming minimum compliance with relevant legislation or guidance, as per the normal requirement
  • a current asbestos management plan should be provided, if the property was constructed prior to 1999 confirming the location and condition of any asbestos within the premises, this follows normal legal requirements

95. We do not propose that the landlord will be obliged to provide fully functioning heating/cooling or lighting systems. We propose that the tenant will need (as part of their pre-tenancy works i.e., fit out) to make provision for appropriate task specific lighting, heating, and electrical distribution to suit their needs.

96. There is no expectation of the parties being obliged to redecorate surface finishes (whether internal or external) unless the absence of decoration externally is necessary for the preservation of the property.

97. Aside from Minimum Energy Efficiency Standards which may be disapplied following this consultation, landlords and tenants will be expected to abide by all other standards that are usually applicable to work on commercial premises.

98. The works to comply with the minimum standard (if any) would only need to be undertaken by the landlord after the conclusion of the rental auction and once a successful bidder has entered into the agreement for lease. If the works were not carried out within a specified period there may be legal remedies included for the tenant, as also included in this consultation.

99. There may be premises which are affected by significant issues, such as dangerous structures notice, combustible cladding, or serious condensation or damp issues. We anticipate these premises may be outside the scope of these measures on the basis that any pre-tenancy works would be prohibitively expensive.

Minimum standard questions

15. The standard proposed is sufficient to take the property to auction and encourage bids from prospective tenants. Do you agree?

  • Scale from Strongly agree to Strongly disagree

16. The list of works strikes a fair balance between what a landlord is expected to do to take the property to auction and encourage bids from prospective tenants, and what the tenant will need to do thereafter by way of fit out. Do you agree?

  • Yes, it strikes a fair balance
  • No, the burden on the landlord should be reduced
  • No, it won’t go far enough to encourage bids

Remedies

100. Should the landlord fail to carry out the required building works, the tenant may need remedies in order to ensure that they can operate their business in the way they intended when entering the auction.

101. Ordinarily, an agreement for lease may contain provision for the courts to intervene where a breach occurs, however, many tenants using this policy may have limited finances and be unable to afford court or legal fees.

102. On this basis, and in addition to the usual remedies, we propose that where a landlord does not complete the works within the required period, a tenant will be permitted to undertake the works themselves. The tenant would then be permitted to recover the monies spent on works from future rent and deposit that are payable to the landlord.

103. In summary, we propose the tenant would have a choice of the following remedies:

  • step-in rights for the tenant to complete the works themselves
  • where the tenant steps in to complete the works themselves, the right to set off the cost of such works against the rent and deposit due under the lease
  • the right to ask the courts to force the landlord to carry out the works
  • the right for the tenant to terminate the agreement for lease if the landlord fails to complete within certain timescales (with the landlord then to pay the costs of the auction and reasonable costs incurred by the tenant)

104. A further possibility which we are considering would be to provide for liquidated damages being paid by the landlord in the event of delay (i.e., a fixed sum set out in the lease being paid for each day of delay).

Remedies question

17. Do you agree with the proposed remedies to be included in the agreement for lease? [Multiple choice]

  • Yes
  • Yes, with the addition of liquidated damages being paid by the landlord in the event of delay
  • No

18. [if no] Which remedies do you think should be included in the agreement for lease? [Multiple choice]

  • If other/none of the above, please provide your reasoning [Free text box]

Consulation questions for the lease

Subletting

105. We could grant the tenant the right to sublet the property, a common feature in leases allowing for situations where the tenant may relocate or cease trading at that premises. In this instance we envisage a landlord would be required to consent.

Subletting question

19. Should tenants be able to sublet their tenancy? [Single choice]

  • Yes, either in whole or in part without landlord’s consent.
  • Yes, either in whole or in part provided in both cases it is with landlord’s consent (not to be unreasonably withheld or delayed)
  • Yes, but only in whole with landlord’s consent (not to be unreasonably withheld or delayed)
  • No, except where we are dealing with larger premises such as a department store where multiple occupancy is likely, and then only with landlord’s consent (not to be unreasonably withheld or delayed)
  • No, not at all
  • Don’t know / don’t have a preference

Subdividing

106. We would also like to consider the applicability of High Street Rental Auctions to larger premises. This may, for example, be where the local authority serves a High Street Rental Auction notice in relation to one floor of a department store.

107. The successful bidder at auction may wish to occupy the whole floor for the purpose of its business, or to allow other businesses to occupy part of the floor.

108. This application of High Street Rental Auctions may require the property to be physically divided; in the example above, this may involve one floor being physically divided from the rest of the building, and that floor then being subdivided.

109. However, we anticipate some challenges with this application of High Street Rental Auctions, given the potential need for works to divide (or subdivide) these larger premises, which could also impact on matters such as building management systems and fire safety.

110. Whether subdivided before or after the auction any necessary planning permission for the change of use can be provided through the proposed Permitted Development Right (see consultation questions for Permitted Development Rights).

Subdividing question

20. A local authority should be able to divide larger premises up and auction off separate sections. Do you agree?

  • Scale from Strongly agree to strongly disagree
  • Please provide your reasoning [Free-text box]

Alterations and tenant fit out

111. We propose that the tenant will be responsible for carrying out its fit out, as is typical in commercial lettings.

112. We propose that the tenant can do certain fit out for their particular use without the landlord’s consent, including erecting internal counters, shelving, partitioning, display cases and other shop fittings and ancillary equipment (subject to removal at the end of the term).

113. Any other alterations by the tenant, including signage, will require a landlord’s consent (not to be unreasonably withheld or delayed).

Alterations and tenant fit out questions

21. Do you agree with the proposal?

  • Yes
  • No
  • (Optional) Please explain your answer [Free-text box]

22. In carrying out their fit out works, should the tenant be able to do works to, or which affect, the external parts (including shop front), or structural elements of the building?

  • Yes – with the landlord’s consent (not to be unreasonably withheld or delayed)
  • No
  • Don’t know/no preference

23. Do you think the tenant should have a rent-free period for carrying out its fit out works?

  • Yes – but only for 2 weeks
  • Yes – for 2-4 weeks
  • Yes – for 4 + weeks
  • No

Definition of premises

114. This section focuses on how we define the extent of the tenant’s demise (the area of the property covered by the lease). Where the property (let by way of High Street Rental Auction) is the whole of a building, a simple red line with a general description in words might suffice.

115. However, in many cases we anticipate the property will form part of a building. For example, a ground floor shop off the high street, or a unit within a shopping centre.

Definition of premises questions

24. Where the property is the whole of a building, we propose to use a simple red line plan with a general description in words to define the tenant’s demise. Do you agree with this proposal?

  • Yes
  • No
  • [If no] (Optional) Please explain your answer [Free-text box]

25. Where the property forms part of a building, we propose that the tenant’s demise will be of an interior demise only, with external and structural parts being retained by the landlord. Do you agree with this proposal?

  • Yes
  • Yes – but in appropriate cases parts of shop fronts (including glazing, frames, and entrance doors) should be demised to the tenant
  • No
  • [If no] (Optional) Please explain your answer

26. [If B yes] Where external and structural parts are retained by the landlord, we consider there may be need for the tenant to be granted additional rights which allow it to attach into such retained parts for the purpose of its fit out – do you agree the tenant should be given these rights?

  • Yes
  • Yes – with landlord’s consent (not to be unreasonably withheld or delayed)
  • No
  • [If no] (Optional) Please explain your answer [Free-text box]

Existing fit out

116. There may be existing fit out in the property from a previous occupier who has since left the property. We propose that the incoming tenant will be able to assess the nature, condition, and benefit of retaining any aspects of the existing fit out for their own use. If no use can be made of it by the incoming tenant, it will be stripped out as part of the tenant’s own fit out works at the tenant’s cost.

117. We also propose that the tenant will be required to remove its fit out at the end of the lease term, although this reinstatement will not extend to putting back any existing fit out (from a previous occupier) which the tenant could not make use of.

Existing tenant fit out questions

27. Do you agree with the proposal?

  • Yes
  • No,
  • (Optional) Please explain your answer [Free-text box]

Rent deposit

118. We want a variety of organisations to bid in High Street Rental Auctions, including community groups or start-up businesses.

119. We are also mindful of the need to provide security to the landlord.

120. In light of the above, we will not be requiring a tenant to provide a guarantor, but the tenant will have to pay a deposit. We are proposing setting the deposit at 3 months’ rent, or £1,000 (whichever is the greater).

Rent deposit questions

28. Do you agree with the proposal?

  • Yes
  • No
  • Don’t know
  • (Optional) Please explain your answer [Free-text box]

Repairs and decoration

121. The lease framework will need to determine who is responsible for repairs during and before the end of the lease (as part of any terminal dilapidations).

122. The tenant will be required to prepare a schedule of condition.

Repairs questions

29. We recommend that the tenant should be liable to pay for repairs to its demised premises, but only to the standard shown by a schedule of condition taken after the landlord has carried out any works to bring the property up to the minimum standard - do you agree?

  • Scale from strongly agree to strongly disagree
  • Please provide your reasoning [Free-text box]

Service charge

123. The lease may need to provide for a service charge regime.

124. We propose that unless the landlord opts for an alternative there be no service charge regime: rather, a simple obligation on the landlord to keep the building in such state of repair as will not interfere with the tenant’s ability to trade from the premises (but with no obligation on the tenant to pay).

125. Should the landlord wish for a differing regime they will have the option to ask the local authority to include one of the following options within the lease:

  • service charge regime 1: taken from superior lease (this is where the landlord has a leasehold interest itself and pays service charge to its own landlord), or to match the regime in (say) a parade of shops with a common landlord
  • service charge regime 2: have a list of services which the landlord can select from and which the tenant has to pay for. We envisage that the landlord will have the opportunity to decide which services it is prepared to provide under the lease

126. The local authority will be required to specify which service charge regime is in operation when marketing the property.

Service charge question

30. Do you agree with this proposal?

  • Yes
  • No,
  • (Optional) Please explain your answer

Utilities

127. A lease could also determine what obligations (if any) the landlord is to have with respect to the supply of water, energy, or telecommunications services to the premises.

Utilities question

31. Which utilities do you think the landlord should be obliged to supply?

  • Water
  • Energy – Gas (if present)
  • Energy – Electricity
  • Telecommunications
  • All of the above
  • None of the above.

Minimum Energy Efficiency Standards

128. This section concerns a proposal to disapply the Non-Domestic Private Rented Sector Regulations to lettings made through High Street Rental Auctions to ease the burdens on landlords.

129. Many buildings in scope of this policy may be dilapidated and of a low energy efficiency standard: to increase the level of efficiency may be costly. In the primary legislation, we have reserved the power to modify or disapply certain enactments that are applicable to lettings.

130. We propose to use this power to disapply the requirements to meet a required minimum Energy Performance Certificate rating for the purpose of marketing and letting the property. An Energy Performance Certificate would still be required but could be at levels F or G.

131. Any decision made will be reviewed after 5 years.

Minimum Energy Efficiency Standard question

32. Do you agree this is a proportionate and sensible measure?

  • Scale from Strongly agree to strongly disagree
  • Please provide your reasoning [Free-text box]

Permitted Development Rights

132. Permitted Development Rights are a national grant of planning permission which allow certain building works and changes of use to be carried out without having to make a planning application. They provide flexibilities and planning freedoms to different users, including businesses and local communities and are an important tool to support growth by providing certainty to applicants.

133. Permitted Development Rights are set out in the Town and Country Planning (General Permitted Development) (England) Order 2015, as amended . Individual rights are subject to limitations and conditions to manage impacts and protect local amenity. For example, some Permitted Development Rights are excluded in certain areas such as conservation areas, while others are subject to prior approval by the local planning authority on specific matters such as transport and highways. Contravening these limitations and conditions constitutes a breach of planning control against which enforcement action may be taken.

134. Separately, the Town and Country Planning (Use Classes) Order 1987, as amended is a key deregulatory tool which provides for movement between uses within a Class without the need for a planning application. In September 2020, to support the high street, we introduced the Class E Commercial, Business and Service use class which includes a range of uses (including shops, banks, restaurants, gyms, and offices) that attract people to local areas and supports diversified high streets.

135. We expect that a number of premises on the high street are already in Class E. Planning permission is not required where premises move to another use within Class E. Planning permission would be required where the new use would result in a material change from the existing lawful use. A change of use outside of Class E would normally require a planning application. We are therefore proposing to introduce two new Permitted Development Rights to support businesses and local authorities to implement and deliver high street rental auctions, both during and after the period of the High Street Rental Auction lease. These would allow premises to change use to the suitable high street use (in those instances where a planning application would ordinarily be required), without the need for a planning application, and retain this use after the initial lease period expires.

Consultation questions for Permitted Development Rights

136. It is proposed that a new Permitted Development Right will be introduced to permit the change from the existing use of a high street premises to a suitable high street use.

137. The new Permitted Development Right would allow the temporary use of a premises for the suitable high street use determined by the local authority and set out in Part 10 – High-street uses and premises – of the Bill[footnote 17] for the term of the individual lease granted following the auction. The Permitted Development Right would not allow for physical works to the premises that amount to development. Where such building works are necessary, a planning application or listed building consent would be required. The premises will revert to its former use at the end of the period of the lease, unless otherwise agreed and planning permission obtained (see details below of a proposed subsequent Permitted Development Right to grant such permission).

138. To align with the proposed scope of High Street Rental Auctions and enable the largest number of premises to potentially benefit, it is proposed that the right would not set any size limit on the premises. The right would apply to listed buildings and to Article 2(3) land including conservation areas, areas of outstanding natural beauty, the Broads, National Parks, and World Heritage Sites.

139. Many Permitted Development Rights for change of use allow for local consideration of specific matters through prior approval by the local planning authority, for example to consider mitigation against any adverse impacts. However, given that only uses deemed suitable for the high street can be brought forward through a local authority led auction process and that the use is temporary (between one and five years), we do not propose that prior approval by the local planning authority is required.

140. Successful bidders will need to comply with the Town and Country Planning (Control of Advertisements) (England) Regulations 2007 (as amended) should they wish to display any signs or other advertisements relating to the new use. There are various classes of deemed consent which allow the display of advertisements on business premises, subject to certain conditions and limitations, without the need for a specific application.

141. The right may only be used in conjunction with a lease under the High Street Rental Auction scheme.

Permitted Development Right questions

33. Do you agree that a new Permitted Development Right should be introduced that would permit the change from the existing use of a high-street premises to a suitable high street use as determined by the local authority for the period of lease?

  • Yes
  • No
  • Don’t know/Not sure
  • (Optional) Please explain your answer

34. As only uses suitable for the high street can be introduced, do you agree that this Permitted Development Right should not be subject to prior approval by the local authority?

  • Yes
  • No
  • Don’t know/Not sure
  • (Optional) Please explain your answer

35. To align with the scope of high street rental auctions, it is proposed that the Permitted Development Right will not have a size limit on premises, exclude listed buildings or premises in Article 2(3) land. Do you agree?

  • Yes
  • No
  • Don’t know/Not sure
  • (Optional) Please explain your answer

A further Permitted Development Right for the ongoing use of the building after the High Street Rental Auction period

142. During the period of the High Street Rental Auction lease the landlord and tenant may be able to agree a new lease for the tenant to continue their business in the premises over the longer term. Planning permission may be required in some cases. The first Permitted Development Right as proposed will allow the use to operate for the duration of the initial High Street Rental Auction lease. We want to create a simplified means to make successful uses permanent.

143. We are therefore also consulting on a second Permitted Development Right to enable the premises to continue the High Street Rental Auction use on a permanent footing once the initial lease period ends. As this would be a permanent permission, we propose that this would be conditional on a prior approval to give an opportunity for the local planning authority to consider any local impacts arising from the use as evidenced throughout the initial lease.

Local consideration through prior approval

144. Permitted Development Rights can allow for local consideration of specific matters through prior approval by the local planning authority. There is an opportunity where these new uses have been successful for the use to continue. However, we want to ensure that any additional flexibility introduced that would enable the High Street Rental Auction use to continue is carefully balanced and allows for any impacts or unintended consequences to be considered.

145. We propose that the local authority has an opportunity to consider through prior approval whether it is desirable for the temporary use to continue. This also provides an opportunity for the community to make representations on this matter and for their views to be taken into account by the local planning authority.

Local consideration through prior approval question

36. Where Permitted Development Rights enable the continued and permanent use of that premises, for the lease use, do you agree that it is subject to prior approval by the local authority enabling consideration of whether the continued use of the premises would have an adverse impact on the area?

  • Yes
  • No
  • Don’t know/Not sure
  • (Optional) Please explain your answer

Prior approval application fee

146. Where additional flexibility following the end of the High Street Rental Auction lease is provided by a permanent Permitted Development Right, requiring prior approval by the local authority, we intend that a fee of £96 should be introduced. This would be consistent with other prior approval application fees for the change of use. This fee may increase in line with other prior approval application fees.

Prior approval application fee question

37. If introduced, do you agree that a fee of £96 (current figure) should be charged for a prior approval application for the permanent change of use?

  • Yes
  • No
  • Don’t know/Not sure
  • (Optional) Please explain your answer

Public Sector Equality Duty and Impact Assessment

147. We are required to assess these proposals by reference to the Public Sector Equality Duty contained in the Equality Act 2010. A Public Sector Equality Duty Assessment and an impact assessment will be prepared reflecting the detail of the changes to be made prior to any secondary legislation being laid.

148. We welcome your comments as part of this consultation on whether the proposed High Street Rental Auction process and related policy could give rise to any impacts on people who share a protected characteristic (Age; Disability; Gender Reassignment; Pregnancy and Maternity; Race; Religion or Belief; Sex; and Sexual Orientation).

Sealed-Bid auction process

149. Please consider the proposed sealed bids auction process set out in Annex C and think about whether the proposed sealed-bid auction process might give rise to any disproportionate impacts on any groups with protected characteristics.

38. Do you believe the sealed-bid process outlined in Annex C may give rise to disproportionate impacts on groups with protected characteristics?

  • Yes
  • No
  • Don’t know
  • [If yes] Please explain your answer

Agreement for lease and standardised lease

150. Please consider the proposed clauses within the agreement for lease and standardised lease sections of this consultation and think about whether these clauses might give rise to any disproportionate impacts on any groups with protected characteristics.

39. Do you think that the proposed clauses within the agreement for lease and standardised lease for a High Street Rental Auction could give rise to disproportionate impacts on people who share a protected characteristic?

  • Yes
  • No
  • Don’t know
  • [If yes] Please explain your answer

Initial Permitted Development Right

151. Please consider the proposed changes to Permitted Development Rights in relation to High Street Rental Auctions within the Permitted Development Rights section of this consultation and think about whether the changes may give rise to any disproportionate impacts on any groups with protected characteristics.

40. Do you think that any of the proposed changes in relation to a new Permitted Development Right for a High Street Rental Auction could impact on: a) businesses b) local planning authorities c) communities?

  • Yes
  • No
  • Don’t know
  • [If yes] Please explain your answer

41. Do you think that proposed changes in relation to a new Permitted Development Right for a High Street Rental Auction could give rise to disproportionate impacts on people who share a protected characteristic?

  • Yes
  • No
  • Don’t know
  • [If yes] Please explain your answer

Further Permitted Development Right

152. Please consider the proposed changes to Permitted Development Rights in relation to High Street Rental Auctions within the further Permitted Development Right for the ongoing use of the building after the High Street Rental Auction period section of this consultation and think about whether the changes may give rise to any disproportionate impacts on any groups with protected characteristics.

42. Do you think that any of the proposed changes in relation to a new Permitted Development Right to provide additional flexibility following the end of the High Street Rental Auction period could impact on: a) businesses b) local planning authorities c) communities?

  • Yes
  • No
  • Don’t know
  • [If yes] Please explain your answer

43. Do you think that proposed changes in relation to a new Permitted Development Right to provide additional flexibility following the end of the High Street Rental Auction period could give rise to any impacts on people who share a protected characteristic?

  • Yes
  • No
  • Don’t know
  • [If yes] Please explain your answer

Annex A – High Street Rental Auction flowchart

High Street Rental Auction Process Flowchart – accessible version

Initial notice period

For an initial notice to be served, the vacancy conditions must be met (unoccupied for 12 months continuously, or 366 days in a 2-year period)​.

The local authority can then serve initial notice on the landlord.

Grace period

During the grace period landlords have 8 weeks to enter a tenancy which is satisfactory to, and has the consent of, the local authority. The conditions of a satisfactory tenancy are:​

  • Starting within 8 weeks​
  • 12+ months​
  • Occupation for a high-street use

Final notice

Local authorities can serve final notice on the landlord if the landlord fails to re-let within the grace period (deadline for final notice is 14 days from expiry of the grace period).

If, after 14 days of the final notice being serves, there is no counter notice served by the landlord, the local authority can start the auction process.

Counter notice period

During the counter notice period, the landlord can then serve counter-notice setting out ground(s) of appeal (deadline for counter-notice is 14 days from service of final notice)​.

The local authority may then serve a withdrawal notice (within 14 days of the counter notice) and the process stops.​

If the local authority does not serve a withdrawal notice, the landlord may then appeal.

Appeals period

The landlord may issue an appeal(within 28 days of counter notice). Grounds for appeal:​

  • Premises not considered suitable for high-street use identified​
  • Vacancy condition not satisfied​
  • Local benefit condition not satisfied​
  • Local authority should have consented to letting​
  • Development affecting premises​
  • Landlord intends for their own occupation

If the appeal is successful, the process stops.

Auction process

If the appeal is unsuccessful, or if there is no counter notice or appeal in the first place: the local authority then has 12 weeks to (1) auction the premises (2) complete the contract for tenancy​

Annex B: Safeguards for landlords

Safeguards for landlords

1. Thought has been given to procedural safeguards for landlords and how landlords can be included in the High Street Rental Auction process.

2. We propose that landlords will be included at the following times during the process:

Rental auction process

  • In the proposed sealed-bid auction process, the landlord will have sole direction over the preferred tenant characteristics information that is advertised alongside the property.
  • In the proposed sealed-bid auction process, the landlord will also have sole direction over choosing the successful bidder.

Auction pack and lease preparation

  • The local authority will ask the landlord for its preferences on the flexible terms (I.e., those which are not fixed in every High Street Rental Auction lease) to be included in the legal agreements (agreement for lease and lease).
  • The local authority will give the landlord an opportunity to provide information about the property which will feed into the contents of the auction pack.
  • The local authority will send copies of the final marketing brochure and legal pack to the landlord shortly prior to marketing.

3. We propose other landlord safeguards are included during:

Marketing of the property:

  • Introducing requirements around the form of marketing (depending on the outcome of this consultation, this may include a ‘To Let’ board displayed at the premises, advertising the property on certain websites on the internet, or advertising the property on social media).
  • Requiring the property to be marketed for a reasonable length of time.

Safeguards for landlords question

44. Do you consider there should be any other safeguards for landlords in the process?

45. [If Yes] Please give further details of what additional safeguards could be added into the process.

Annex C: Auction options for consultation

1. This section sets out the context and detail of how the auction process might work. Please read this information wholly and carefully before answering questions in relation to the auction process in the consultation.

2. A traditional auction process (e.g., when selling a property) can be divided into 5 stages:

  • 1. Auction pack preparation. A marketing brochure is developed by the auction house (or estate agent if the auction house has outsourced their marketing), and the sellers’ solicitors will prepare a legal pack.
  • 2. Marketing period. The property is advertised alongside the marketing brochure. When selling a property via auction, auction agencies sometimes partner with estate agents to market the property. During this period, the estate agent can act as the public face for the property, answering questions on behalf of the auctioneer and the seller.
  • 3. Pre-registration period. Interested potential bidders register their interest and can arrange viewings. This stage can also be used to filter out high-risk bidders (e.g., by requiring verification of bidder identification and criminal record checks).
  • 4. Bidding. Traditionally, an auction bid would simply be a price the bidder is willing to pay, and bidding is ‘open outcry ascending’ (participants bid against each other by vocalising their bids and incrementally increasing their bids until the highest bid is found).
    Bidding may take place in-person at an auction house (with the option for telephone and online bids), or online-only.
  • 5. Assessment. Traditionally, the successful bidder is the person with the highest bid.

Process requirements for the auction element of a High Street Rental Auction

3. The auction element of the High Street Rental Auction process needs to:

  • identify the rental price to be paid for the property.
  • identify how the successful bidder will be chosen.
  • be completed within 12-14 weeks.

Identifies the rental price to be paid for the property

4. Different auction types use different mechanisms to identify the price the successful bidder will pay. For example, in traditional English auctions, the price that is paid is the same price the successful bidder pays. However, in other auction processes (e.g., Vickrey auctions), the price paid by the successful bidder is the price submitted by the second highest bidder.

Choosing the successful bidder

5. Many auction types use the ‘highest bidder wins’ mechanism to decide the successful bidder. However, this may not be the most appropriate for High Street Rental Auctions because lower bids have other factors that may be more valuable. For example, a lower bidder might:

  • have a stronger business model (offering higher covenant strength and security).
  • diversify the high street (e.g., the highest bidder might be a newsagent but as there are already 3 newsagents on that street, another bid for a restaurant may be more desirable).

Timeline

6. The Bill requires the High Street Rental Auction process to be complete within 14 weeks of the final notice coming into effect, although this is effectively a 12-week period given the appeal risks.

Types of auction process

7. We propose a sealed-bid auction may work best for High Street Rental Auctions and have outlined how this might work in the section below.

8. However, various other auction types exist that may also work for High Street Rental Auctions. For example:

Traditional auction (also known as an English auction)

9. This is where the bidders assemble on a specific date and time, either in-person or online. Bidding is ‘open’ and ‘live,’ with participants offering their rental bid, and incrementally increasing their bids in response to other bids received.

10. Bids are received until the highest bid is reached. The auctioneer will make a judgement when this is, but it would involve the auctioneer making it clear when they believe this might be the final bid and offering a last chance for others to bid.

11. At the close of bidding the highest rental bidder wins. Prior to auction day there is a pre-registration process where there is an opportunity to filter out any high-risk bidders (e.g., by requiring a criminal records check). Only bidders who pass pre-registration can attend the auction day.

Tender processes

12. A tender process would involve the landlord and/or local authority inviting potential tenants to bid for the tenancy. Each bid would be more akin to a proposal, with each potential tenant stating their rental bid, but also setting out how they meet a range of criteria.

13. The bid is then assessed against how well they meet the criteria. A mark scheme would need to be developed in advance and advertised alongside the opportunity. The mark scheme could be weighted, giving more points to characteristics that are deemed most important.

Proposed auction process: sealed-bid auction

Overview

14. This process will require bidders to submit a ‘sealed bid’ in which they state the rent they are willing to pay for the lease of the property. Alongside this, they should give a brief overview of what they intend to use the property for.

15. The bidders will also be encouraged to provide supporting evidence of how they might fulfil the obligations of the contract (e.g., bank statements to prove they can pay the deposit). Although it will not be mandatory for bidders to provide this evidence, there will be a strong incentive for bidders to provide this, as it will make their bid stronger and more likely to win.

16. Once the bidding deadline passes, the landlord will be sent a copy of all the bids and each overview of their business proposal including information provided by bidders such as their business plans. The successful bidder will be chosen by the landlord. It may be likely the landlord is happy with the highest rental bidder, but they will be free to choose any bid submitted if they prefer another bid for any reason.

17. In the event the landlord does not engage in the process, the local authority will assume the landlord’s role, but will be obliged to choose the highest rental bidder.

Timeline

Stage: 1. Auction pack preparation

What this stage would look like for the sealed-bid auction

At this stage, the local authority will need to prepare a legal pack (containing the agreement for lease, and lease) and marketing brochure.

Week 3

  • Requests for property searches (if not submitted earlier).
  • The local authority seeks input from the landlord on the following items:
      1. Certain property information about the premises.
      1. Replies to standard property enquiries.
      1. The landlord’s preferences on the flexible terms in the lease.
      1. The landlords’ preferences for tenant characteristics for use in the marketing.
  • The local authority prepares information for the marketing brochure, e.g., arranging for a ‘To Let’ board sign for outside the property.

Week 5

  • Deadline for landlord to respond to the requests for input outlined above. The landlord will be asked to respond within a specific time (e.g., 5-10 days).
    • If there is no response from the landlord to lease and tenant characteristic queries, the local authority will regard the landlord as having no preference.
    • If the landlord fails to provide information about the premises, they may commit an offence under clause 195 of the Bill. The local authority may also publish the auction packs without this information.
    • The local authority could also seek to extend time limits for the process under clause 198 of the Bill.
  • Local authority pulls together all the information for the marketing brochure and legal pack.
  • Legal clearance from the local authority’s lawyers.

By end of week 6

  • The local authority will send the final auction packs to the landlord including:
    • Legal pack including final form of agreement for lease, and lease.
    • Marketing brochure.

Stage 2: Marketing

What this stage would look like for the sealed-bid auction

Weeks 7 to 12

  • The property will be marketed over this period. Depending on results of this consultation there may be minimum requirements around:
    • The length of time for marketing.
    • The marketing tools and strategies used.
  • The marketing brochure will be the main product used to advertise the property and will there be available for the public to access (there will be no need to register to access the brochure).

Stage 3: Registration

What this stage would look like for the sealed-bid auction

  • Interested bidders register their interest with the local authority or outsourced agency.
  • Any bidder registering their interest will be sent the legal pack.
  • If the interested bidder finds the terms in the legal pack acceptable, they may submit a bid.

Stage 4: Bidding

What this stage would look like for the sealed-bid auction

  • Bidders submit their rental bid alongside an overview of their proposed use of the premises (including a business plan where applicable).
  • Although not mandatory, bidders will be encouraged to also submit evidence to support their bid for example: - Proof of funding to pay the rental bid. - Proof of funding to pay the deposit. - Evidence to demonstrate the strength of the business plan.
  • The successful bidder will pay whichever price they have submitted as stated in their rental bid.

Stage 5: Assessment

What this stage would look like for the sealed-bid auction

Weeks 13 to 14

  • The landlord will choose their preferred bid. The regulations will not prescribe any restrictions on the landlord’s decision. However, in the event the landlord does not engage in the process, the local authority will assume the landlord’s role, but will be obliged to choose the highest rental bidder.

Benefits of the sealed-bid auction

18. We believe the sealed-bid auction would work best because it:

  • Is efficient for local authorities: by allowing the landlord full control over deciding the successful bidder, there is less resource need for the local authority. Although local authorities would need to be involved in assessment if the landlord does not engage.
  • Increases demand: by not setting requirements for bidders at the start of the process (e.g., through pre-registration checks or by setting out criteria for a tenant to meet), bidders are not automatically filtered out. This maximises the bidding pool.
  • Holistic assessment: landlords can assess the risk of bids in the round.

About this consultation

This consultation document and consultation process have been planned to adhere to the Consultation Principles issued by the Cabinet Office.

Representative groups are asked to give a summary of the people and organisations they represent, and where relevant who else they have consulted in reaching their conclusions when they respond.

Information provided in response to this consultation may be published or disclosed in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2000 (FOIA), the Environmental Information Regulations 2004 and UK data protection legislation. In certain circumstances this may therefore include personal data when required by law.

If you want the information that you provide to be treated as confidential, please be aware that, as a public authority, the Department is bound by the information access regimes and may therefore be obliged to disclose all or some of the information you provide. In view of this it would be helpful if you could explain to us why you regard the information you have provided as confidential. If we receive a request for disclosure of the information we will take full account of your explanation, but we cannot give an assurance that confidentiality can be maintained in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on the Department.

The Department for Levelling Up, Housing and Communities will at all times process your personal data in accordance with UK data protection legislation and in the majority of circumstances this will mean that your personal data will not be disclosed to third parties. A full privacy notice is included below.

Individual responses will not be acknowledged unless specifically requested.

Your opinions are valuable to us. Thank you for taking the time to read this document and respond.

Are you satisfied that this consultation has followed the Consultation Principles? If not or you have any other observations about how we can improve the process please contact us via the complaints procedure.

Personal data

The following is to explain your rights and give you the information you are entitled to under United Kingdom data protection legislation.

Note that this section only refers to personal data (your name, contact details and any other information that relates to you or another identified or identifiable individual personally) not the content otherwise of your response to the consultation.

1. The identity of the data controller and contact details of our Data Protection Officer

The Department for Levelling Up, Housing and Communities is the data controller. The Data Protection Officer can be contacted at dataprotection@levellingup.gov.uk or by writing to the following address: Data Protection Officer, Department for Levelling Up, Housing and Communities, Fry Building, 2 Marsham Street, London SW1P 4DF.

2. Why we are collecting your personal data

Your personal data is being collected as an essential part of the consultation process, so that we can contact you regarding your response and for statistical purposes. We may also use it to contact you about related matters.

We will collect your IP address if you complete a consultation online. We may use this to ensure that each person only completes a survey once. We will not use this data for any other purpose.

Sensitive types of personal data

Please do not share special category personal data or criminal offence data if we have not asked for this unless absolutely necessary for the purposes of your consultation response. By ‘special category personal data,’ we mean information about a living individual’s:

  • race
  • ethnic origin
  • political opinions
  • religious or philosophical beliefs
  • trade union membership
  • genetics
  • biometrics
  • health (including disability-related information)
  • sex life; or
  • sexual orientation.

By ‘criminal offence data,’ we mean information relating to a living individual’s criminal convictions or offences or related security measures.

3. Our legal basis for processing your personal data

The collection of your personal data is lawful under article 6(1)(e) of the UK General Data Protection Regulation as it is necessary for the performance by Department for Levelling Up, Housing and Communities of a task in the public interest/in the exercise of official authority vested in the data controller. Section 8(d) of the Data Protection Act 2018 states that this will include processing of personal data that is necessary for the exercise of a function of the Crown, a Minister of the Crown, or a government department i.e., in this case a consultation.

Where necessary for the purposes of this consultation, our lawful basis for the processing of any special category personal data or ‘criminal offence’ data (terms explained under ‘Sensitive Types of Data’) which you submit in response to this consultation is as follows. The relevant lawful basis for the processing of special category personal data is Article 9(2)(g) UK GDPR (‘substantial public interest’), and Schedule 1 paragraph 6 of the Data Protection Act 2018 (‘statutory etc and government purposes’). The relevant lawful basis in relation to personal data relating to criminal convictions and offences data is likewise provided by Schedule 1 paragraph 6 of the Data Protection Act 2018.

4. With whom we will be sharing your personal data

Department for Levelling Up, Housing and Communities may appoint a ‘data processor,’ acting on behalf of the Department and under our instruction, to help analyse the responses to this consultation. Where we do, we will ensure that the processing of your personal data remains in strict accordance with the requirements of the data protection legislation.

5. For how long we will keep your personal data, or criteria used to determine the retention period

Your personal data will be held for two years from the closure of the consultation, unless we identify that its continued retention is unnecessary before that point.

6. Your rights, e.g., access, rectification, restriction, objection

The data we are collecting is your personal data, and you have considerable say over what happens to it. You have the right:

a) to see what data we have about you

b) to ask us to stop using your data, but keep it on record

c) to ask to have your data corrected if it is incorrect or incomplete

d) to object to our use of your personal data in certain circumstances

e) to lodge a complaint with the independent Information Commissioner (ICO) if you think we are not handling your data fairly or in accordance with the law. You can contact the Information Commissioners Office at https://ico.org.uk/ or telephone 0303 123 1113.

Please contact us at the following address if you wish to exercise the rights listed above, except the right to lodge a complaint with the Information Commissioners Office: dataprotection@levellingup.gov.uk or Knowledge and Information Access Team, Department for Levelling Up, Housing and Communities, Fry Building, 2 Marsham Street, London SW1P 4DF.

7. Your personal data will not be sent overseas.

8. Your personal data will not be used for any automated decision making.

9. The collection of your personal data

We use a third-party system, Citizen Space, to collect consultation responses. In the first instance your personal data will be stored on their secure United Kingdom-based server. Your personal data will be transferred to our secure government IT system as soon as possible, and it will be stored there for two years before it is deleted.

  1. Part 10 – Terms of contract for tenancy (point 5) – Levelling Up and Regeneration Bill. 

  2. Part 10 – High-street uses and premises – Levelling Up and Regeneration Bill. 

  3. Part 1 of Schedule 16 - Levelling Up and Regeneration Bill  2

  4. Part 10 – Designated high streets and town centres, High-street uses and premises – Levelling Up and Regeneration Bill. 

  5. Part 10 – Designated high streets and town centres, High-street uses and premises – Levelling Up and Regeneration Bill. 

  6. Part 10 – Vacancy condition, Local benefit condition– Levelling Up and Regeneration Bill. 

  7. Part 10 – Initial notice – Levelling Up and Regeneration Bill. 

  8. Part 10 – Circumstances in which letting to be permitted – Levelling Up and Regeneration Bill. 

  9. Part 10 – Final notice – Levelling Up and Regeneration Bill. 

  10. Part 10 – Counter-notice, Appeals – Levelling Up and Regeneration Bill. 

  11. Part 10 – Restriction on letting while final notice in force – Levelling Up and Regeneration Bill. 

  12. Part 10 – Terms of contract for tenancy, Terms of tenancy – Levelling Up and Regeneration Bill. 

  13. Part 10 – Interpretation of Part 10 (point 8) – Levelling Up and Regeneration Bill. 

  14. Part 10 – Exclusion of security of tenure – Levelling Up and Regeneration Bill. 

  15. Part 10 – High-street uses and premises – Levelling Up and Regeneration Bill. 

  16. Part 10 – High-street uses and premises – Levelling Up and Regeneration Bill.