Council Leaders Agree to New Powers to Auction Leases on Long Term Empty Commercial Properties

Westmorland and Furness Councils Cabinet meeting at Kendal town hall today approved the adoption of new powers from government to allow the council to hold High Street Rental Auctions (HSRAs)  to tackle long-term empty high street commercial properties across Westmorland and Furness with pilot area designations for the scheme for Barrow, Kendal, Ulverston  and Penrith.

The new powers adopted allow councils to step in and auction leases for unused buildings to get them back into productive use, With the intention of bringing energy, enterprise, and footfall back to town centres.

In Penrith the new powers will cover all commercial property in Angel Lane, Angel Square, Bowling Green Lane, Brewery Lane, Burrowgate, Castlegate, Cornmarket, Devonshire Street, Great Dockray, King Street, Little Dockray, Market Square, Middlegate, Poets Walk, Princes Street, Queen Street, St. Andrews Churchyard, St. Andrews Square and St. Andrews View. 

During the Cabinet meeting, Penrith North councillor and cabinet member for adult care, Cllr Bell said: “I do think we need to be mindful that with people’s changed shopping habits; it is unlikely that town centres will look the way they have done in the past.”

Councillor Jonathan Brook, Leader of the Council and Cabinet Member for the Economy, said: "Diverse high streets and town centres across our area are central to achieving our vision of a thriving and sustainable Westmorland and Furness. We want to encourage vibrant towns and communities, a strong and diverse economy, successful businesses and good jobs. To be a place where investment and regeneration create opportunities for people, while protecting and building on the area's distinctive natural, cultural and economic assets.  

"Our Inclusive and Green Economic Growth Strategy 2026-35 sets out a vision for our future, where assets are harnessed, businesses can grow, communities prosper and the economy leads in innovation and sustainability. Tackling our long-term empty properties is one element supporting this vision.

"Bringing long-term properties back into productive use, can support new and growing businesses, strengthen local economies, improve the appearance and vibrancy of our high streets and create places where people want to live, work, visit and invest. I look forward to seeing the positive effect this scheme will have."

Engagement earlier this year informed the proposals and there will now be a further 28-day consultation on the agreed designations.

Introduced in December 2024. HSRAs require landlords to rent out persistently vacant commercial properties to new tenants such as local businesses or community groups. Premises are eligible for a High Street Rental Auction where it has been unoccupied continuously for 12 months, or for at least 366 days (non-continuously) within a 24-month period. 

HSRA enables the council to assign a lease on behalf of the landlord, if  they have not taken reasonable steps to let their premises. The landlord remains the legal owner of the property and landlords can still let their properties voluntarily 

Following a statutory notice process, councils can arrange an auction and grant a lease, typically for between one and five years, to a successful bidder for uses that support the vitality of the high street, such as shops, cafés, offices, community facilities, leisure uses or services. The aim is to reduce long-term vacancy, increase footfall, support local businesses and community organisations, and contribute to the regeneration of town centres and high streets. 

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