I recognise how valuable our pubs are to the many people who enjoy them. Not only are they important parts of local economies, but they also bring people together and are often the very lifeblood of our communities.
It is always disheartening to see a pub forced to close its doors permanently and I understand that closures can be hard for owners and communities. I also recognise the wider and persistent issue of vacant high street units which the proposed new high street rental auction process is aiming to address. Shops and buildings being left vacant for prolonged periods of times is a blight to our high streets, has a direct and negative impact on footfall and risks businesses shutting down.
The Government carried out a consultation on the design of high street rental auctions, including a new permitted development right to allow buildings outside the Commercial, Business and Service Use Class (such as pubs) to change use as part of the new high street rental auctions process.
The Government has been clear that the permitted development right, if introduced, would not allow for physical works to be carried out to the premises that amount to development and the Department for Levelling Up, Housing and Communities has said that:
“Where such building works are necessary, a planning application or listed building consent would be required. The premises will revert to its former use at the end of the period of the lease, unless otherwise agreed and planning permission obtained…”.
It will be for individual local authorities – who know their area best – to use their discretion when it comes to using the new powers for high street rental auctions. The aim is not to interfere with properties whose landlords are actively seeking to fill their premises, but rather to provide a tool to local authorities where vacancy rates are a significant issue and landlord cooperation is low.
Existing mechanisms to support community groups to step in where pubs are at risk of being lost without intervention include listing a pub as an Asset of Community Value which allows communities up to six months to bid to buy it if it has been put for sale. In addition, the Government’s £150 million Community Ownership Fund is helping community groups buy such assets as pubs so that they can continue to serve their local area.
(August 2023)
