How will commercial property reforms impact high street landlords?

The future of local high streets has reached a tipping point – 67% of Britons already believe they are dying. And they could be right: almost 13,000 shops closed in 2024.

It is not just retailers that are struggling. The growth of online shopping and economic pressures mean that commercial landlords often struggle to rent units, which can end up standing empty for months on end.

Despite this gloomy outlook, high streets and town centre shops still play an important role in local communities with 54% of people visiting them at least once a week.

Controversial new legislation designed to help maintain this footfall could have significant financial and practical ramifications for commercial landlords, with some being forced to rent properties for a reduced or even zero rent.
The Commercial Property team at Attwaters is watching developments carefully  and has put together this guide to help you anticipate the evolving legislative landscape.

What changes are being considered to address empty commercial property on the high street?

One recent proposal would force landlords to offer empty shops rent-free to small businesses, charities and community groups on a temporary basis. The MP who introduced the Vacant Commercial Properties (Temporary Use) Bill (the Bill) believes the legislation could help to tackle absentee landlords, some of whom he claims make unreasonable letting demands when approached by potential tenants.

How would temporary occupancy of commercial units work under the Bill?

The scheme needs to be practical for occupiers, landlords and local authorities. Landlords need to be able to protect their assets and manage any risks arising from a temporary occupancy.

Some of the key points that need to be explored include the local authority process for identifying and assigning suitable properties, the legal structure for temporary tenure and what happens when a landlord finds a permanent tenant.

Put forward as a Private Members’ Bill in December 2025, the proposed legislation is still at an early stage. A second reading is planned for April 2026 followed by a detailed examination of the proposals by a dedicated committee.

What other changes do commercial landlords need to be aware of?

We already have the Levelling Up and Regeneration Act 2023 (the Act), where local authorities in England have the power to auction persistently vacant commercial premises for rent without the consent of the landlord or their mortgagees.

Although the Act is currently at implementation stage, a dozen local councils have joined an early adopter programme, which has already prompted concerns over its impact. For example, the British Landlords Association warns mandatory auctions could impact property values and rental yields.

The Act enables the granting of leases of between one and five years with landlords being compelled to ensure their property meets certain standards. The auction process is complicated with multiple stages and grounds for appeal. If you have a commercial property that might be affected, then our team can talk through your options.

How will the Act and changes proposed in the Bill impact commercial landlords and investors?

With the Act already being implemented and other reforms in the pipeline from the Bill, it is a good idea to seek legal advice before embarking on any property transactions or decisions. The Act and additional changes proposed by the Bill could impact you.

Our Commerical Property team has extensive experience of assessing the effect of legislative change on interested parties and can provide trusted and independent advice. Contact our friendly team today on 0330 221 8855 enquiries@attwaters.co.uk to find out how we can support you.