New Legislation Grants Council Power to Auction Tenancy of Vacant Shops

This month councils will acquire new powers to put up for auction the tenancy of vacant shops that have been left untenanted for over a year and where the owner has no immediate plan in place for finding a new tenant.

The power given to councils that choose to use it comes into force as result of the Levelling up and Regeneration Act of 2023  - passed by the previous government. https://www.legislation.gov.uk/ukpga/2023/55/part/10 

Lib Dem opposition leader on Sefton, Cllr. John Pugh, is asking Sefton to consider using this power as part of the toolkit to revive Lord St.

“ I have brought it to the attention of council officers who are not unsympathetic.

 It is not a solution to the problem of Lord St., but it is part of a solution .

 It is a move that could be made where we have large absentee landlords with a big portfolio of property who frankly don’t need to have the odd shop tenanted. A classic example was the premises formerly known as Mister Smiths. The store plumb in the middle of Lord St originally sold Marks and Spencer Seconds, but was boarded up for the best part of a decade or more. There had been a bankruptcy and it fell into the hands of major Scottish bank who barely knew they owned it. What was an insignificant entry in the bank's billion pound ledger was nonetheless an obvious blot on the Lord St landscape.”

Under the new law Sefton Council could step in in a case like that and auction a tenancy at a fair market price. 

Cllr.Pugh believes that the power would be used very sparingly. “ The fact that the council have the power in reserve may by itself be sufficient. It will act as spur encouraging retail landlords- many of whom do not live in Southport- not to hold out too long for unrealistic rents.”

The Council cannot use the power summarily and must first officially designate a street like Lord St as a “High St”  and then ensure that occupancy is properly monitored and recorded over time.

“ I do not see this as a problem,’ says Cllr Pugh , “ as the council ought to have a proper understanding of local businesses anyway in such a prime location, but is important to recognise that other measures need to be taken to make Lord St. work in age of online shopping.”