New measures to help high street regeneration

COUNCILLORS will be asked to agree to launching a consultation on the introduction of new enforcement measures to deal with empty shops in two County Durham towns.

As part of the Levelling Up and Regeneration Act 2023, the government introduced the High Street Rental Auction (HSRA) scheme to tackle persistent vacant units in town centres. Next week, Durham County Council’s Cabinet will be updated on the work underway to address vacancies in the county, before being asked to agree to launching a formal consultation to designate two pilot HSRA areas in Bishop Auckland and Stanley.

HSRAs allow authorities to undertake an auction, offering a lease of up to five years, on a privately owned property. However, enforcement through this scheme will be a last resort, used only when other attempts to engage and work proactively with a landlord have failed.

Currently, vacant shops are addressed through a five-step plan:

  • Identification
  • Establish engagement
  • Education
  • Encouragement
  • Enforcement

This five-step process allows the council to work with landlords through case officers to address barriers in bringing the building or land back into use. Meanwhile, there is financial support available for businesses to help improve, refurbish, or support alternative uses for town centre properties through the Targeted Business Improvement scheme.

The council also offers a range of support initiatives for businesses to reduce the number of empty shops, such as training and grants through the Towns and Villages Programme and Property Reuse Fund.

In Bishop Auckland and Stanley, the HSRA scheme would only be implemented when this process has failed.

The council has recommended the HSRA powers be piloted in these two towns as they show the largest increase in vacancy rates in the county in a 12-month period, with 3.25 per cent and 3.2 per cent respectively. They also meet two of the principal conditions for the scheme with regard to the number of properties unoccupied continuously for 12 months and the opportunity for local benefit.

Cllr Karen Allison, Durham County Council’s Cabinet member for leisure, tourism and high street, said: “We are committed to supporting businesses and revitalising high streets across the county, and we will do everything we can to work proactively with landlords to achieve this.

“However, HRSA powers offer us a further enforcement route to speed up the recovery of town centres when dealing with difficult landlords. Combined with the wide range of other schemes, initiatives and enforcement options at our disposal, we now have more tools than ever before to bring high streets to the standard our residents expect.”

Multiple actions must be taken before the HSRA process can begin. High street areas where the scheme can be used must be designated and undertake a 28-day minimum community engagement period. The council must also be satisfied that the premises is suitable for auction and has been vacant for a year, or cumulatively for more than a year within a two-year period. Plus, it must determine if the HSRA process would benefit the local society, economy and environment.

The purpose of the consultation for Bishop Auckland and Stanley will be to gather support or objections for the boundary of the proposed town centre, rather than the principle of the HSRAs. It is scheduled to take place from Wednesday 22 October to Wednesday 19 November.

Once designation is applied, an HSRA will last around 26 to 28 weeks from the initial four-week community engagement period to the auction and letting period.