High street and other commercial landlords are considering the potential impact on their businesses of government plans to allow local authorities to force commercial landlords to rent out their empty properties, announced in the recent Queen’s Speech.
The aim of the new laws is to revitalise high streets and rejuvenate town centres, but they could create significant issues for commercial landlords. One proposal, for example, is that prospective tenants should be given a right to bid for shops that have been vacant for more than a year, through ‘Compulsory Rental Auctions’.
Local authorities’ powers to compulsorily purchase commercial premises will also be extended to allow purchases for the public benefit (such as for social housing, or regeneration) against a landlord’s wishes.
Commercial landlords should monitor the rules closely as they take shape, and plan and budget accordingly.
If you have any questions or queries and would like to discuss these further then please contact our dedicated Commercial Property team on 01484 821500 or by email at info@ramsdens.co.uk.