Can the Local Authority force me to lease my commercial property?

If a property meets the above criteria, the local authority can serve a notice on the owner of the property, and whilst the notice is served, the owner is prevented from renting out the property without the local authority’s permission, unless a contract is already in place. The duration of the notice may last up to 10 weeks. If, however, the landlord has a potential letting for at least one year, and the local authority is satisfied that this will result in occupation by the regular presence of people, i.e. the letting would ensure that the property’s use aligns with the goals of the LURA 2023, then the local authority must consent to the letting. If no such letting is going to take place, then the local authority can serve a final notice on the property’s owner, and once this expires, a rental auction for the property can be carried out. The owner can serve a counter-notice on the local authority, in which the owner states that they intend to carry out construction works or similar on the property, or they intend to occupy the property for their own business or residence.

A rental auction for a lease of the property must be for a term of between one and five years, and the lease will be excluded from the Landlord and Tenant Act 1954, meaning the tenant would not benefit from security of tenure. The terms of the tenancy will be based on regulations, but they may include a requirement for the landlord to carry out works.

Although the LURA 2023 may appear daunting to property owners, the Act is not without benefits. The LURA 2023’s goals of reducing vacant properties can improve a high street’s appeal, attracting more traffic to that area and leading to more competitive property values and higher rental income.

Conclusion

Landlords must understand and actively manage high street properties. This Act serves as a catalyst for addressing prolonged vacancies by providing local authorities with the tools to bring these properties back into productive use. The risk of auctions may necessitate landlords to plan strategically, and put measures in place to keep their properties occupied or explore alternative uses to avoid triggering the vacancy threshold. Landlords are also encouraged to embrace the Government’s vision of revitalised high streets and collaborate with local authorities to bring this vision to life.