FAQs
Identifying the area: The council identifies high streets where an HSRA could be used and carries out a public consultation lasting at least 28 days before any decision is made.
Checking which properties are eligible: Only units that have been empty for 12 consecutive months (or 366 days within a two‑year window) and where bringing them back into use would benefit the local area can be included.
Working with landlords: The council first seeks to collaborate with property owners to find voluntary solutions and explore ways to get the unit let without formal action.
Serving an Initial Notice: If the property remains empty, an Initial Notice may be issued. This gives the landlord a further period to find their own tenant.
Serving a Final Letting Notice: If the unit is still unoccupied after the initial notice period, the council issues a Final Letting Notice, confirming its intention to move to auction. During this time, landlords are restricted from granting leases, licences or similar agreements, and cannot carry out works without council approval. The landlord has the right to appeal the final letting notice issued by serving a counter-notice.
The auction period (12 weeks): The property is advertised and interested businesses, enterprises and community groups submit rent bids with supporting information. The bid should be in line with fair market rental prices. The landlord can choose the preferred bidder; if they do not, the council proceeds with the highest compliant bid.
Fit‑out and occupation The landlord undertakes any required minimum‑standard works to ensure the property is safe, stable and secure. Once completed, the incoming business takes up a lease of between one and five years.
What is a High Street Rental Auction (HSRA)?
HSRA is a new Government power that helps councils to try and bring long‑term empty shops back into use. If a shop has been empty for over 12 months, the council can follow a set legal process to work with the landlord and, if needed, arrange an auction to try and find a new tenant who will bring positive benefit to the local community.
Successful bidders will enter into a 1-to-5-year lease with the landlord upon completion of the auction.
How does the HSRA process work?
The High Street Rental Auction process involves several key steps:
What area is the council proposing to designate?
We are proposing a designation area running from the section of Caledonian Road near Frederica Street down to Carnegie Street. This stretch covers two Local Shopping Areas: Caledonian Road (Central) and Caledonian Road (Copenhagen Street). It contains the highest concentration of long‑term vacant units in Islington. A map of the proposed area is included in the survey.
What types of businesses or organisations might move into empty units?
Once a HSRA process is triggered for a property, the landlord is given the opportunity to identify and put forward a suitable tenant before the council proceeds to auction. Any proposed tenant must meet the council’s ‘local benefit condition’ - meaning the council must be confident that the intended use of the unit will positively contribute to the local economy, society or environment.
Our aim is to support a thriving, diverse and resilient high street, where long‑term empty premises are occupied by businesses and organisations that deliver clear local benefit. In line with Islington’s Inclusive Economy agenda, the council will encourage bids from independent businesses, social enterprises and community or cultural groups organisations that strengthen the area’s vitality, broaden the mix of uses, create opportunities for local people, and contribute to a fairer, more sustainable local economy.
How does the bidding process work?
When a property is advertised through the HSRA process, prospective tenants must decide the annual rent they are prepared to offer. Applicants may submit a bid at any rental level, but it should reflect a fair market rate. They also have one other opportunity to submit a bid, and other bidders may choose to offer more. For this reason, interested parties may wish to propose a rental figure that they feel gives them a strong chance of being selected.
When placing a bid, applicants must ensure they provide information such as a description of their proposed use of the premises. It will benefit applicants to set out their proposal in as much detail as possible. While the rental offer is an important factor, the landlord ultimately chooses the preferred tenant and may base their decision on the quality of the submitted information as well as the bid itself. If the landlord does not make a selection, the council is required to proceed with the highest eligible bid on their behalf.
Throughout the bidding window, the council will be available to support prospective applicants and help ensure they are able to submit a complete and valid bid.
I’m interested in bidding for space when it becomes available at auction. How can I let the council know?
We invite any organisations and businesses looking for space in the borough to email businesssupport@islington.gov.uk.
What happens to my feedback?
All responses will be read and summarised in a Consultation Report, which will be published on the council’s website. Your feedback will help shape the final designation boundary that the council takes forward for approval.
