High Street Rental Auctions

Gideon Amos Excerpts

Wednesday 26th February 2025 Westminster Hall

[Gideon Amos (Taunton and Wellington) (LD)]

I congratulate the hon. Member for Bournemouth West (Jessica Toale) on bringing this key issue for our town centres to Westminster Hall.

I was elected on a platform that focused in part on bringing inward investment to Taunton and Wellington, and that passion is close to my heart. Taunton and Wellington town centres are already attractive and vibrant places to visit, to shop and for leisure. Occupancy rates in Taunton town centre have increased from 85% to 90%; more new businesses are moving in. Somerset County Gazette reports seven new businesses in the town centre in the past 12 months: Cornish Bakery, Koottaan, Desparia, Somerset Bakehouse, Toys “R” Us, Drippy Bear and Islands Caribbean restaurant—not a vape shop among them, which is good to see for our town centre.

In Wellington, street food and food festivals bring people in from far and wide, and a new banking hub has opened. My only objection to the new banking hub, which is great news for Wellington, is that it is run by the Post Office, with a sign above the door saying “Post Office”, but there is no post office inside. Wellington still needs a post office, and we hope that the Government will see the light and decide that buildings with “Post Office” on the outside should contain a post office. We will continue working on that as hard as we can.

On Sundays, Taunton has a fantastic new independent market, which brings people in from far and wide. However, one building is a particular issue for our town centre. It was built as a W & A Chapman department store in 1938, and was substantially remodelled in the ’60s, just after Debenhams took it over in 1959. It is a large, handsome building, and a real landmark in the centre of our town—one of the biggest buildings in the heart of our town centre, if not the largest. However, it has stood empty, sadly, for around four years now.

I welcome the high street auction provisions in the Levelling-up and Regeneration Act 2023, which could be extremely useful. However, the powers to allow councils to carry out high street rental auctions are subject to a number of restrictions. Auctions apply to commercial premises that have been vacant for at least one year out of the past two, which is a reasonable requirement—so far, so good. They must also meet a suitability requirement—this is getting a bit doubtful. Then there are process and landlord obligations: local authorities can issue a final letting notice compelling a landlord to rent the property via auction, which is obviously a good move. The property must also be offered at a fair market rent, which is reasonable. Then there is an appeal mechanism, so there are more catches. One potential challenge is that the auction’s success depends on tenant demand. Who will define tenant demand? If we do not attempt an auction, how will we discover what tenant demand is? The appeal process provides a number of areas for challenge by the landowner.

Whether or not high street rental auctions are suitable for that particular Debenhams building, I am concerned about the number of exceptions from the powers. The guidance says:

“High Street Rental Auctions will not be suitable for all high street premises; for instance, large former department stores may be subject to long-term, complex redevelopment plans which may be negatively impacted by being subject to inclusion.”

Presumably, any owner of a former department store could say, “My department store is subject to complex, long-term redevelopment plans, which could be negatively impacted by a high street auction.” A whole class of town centre buildings—some of the biggest we have—therefore seem to be excluded from high street rental auctions, which is a real drawback and a real shame.

The guidance also says that auctions will not be appropriate

“should the local authority consider that there is not likely to be a sufficient tenant base and demand for the premises”.

As I said, how do we know what the demand for the premises is if we have not attempted to market them through high street auctions? I urge the Government to look at the guidance and the powers, and to see whether they could be applied to some of the biggest, most iconic buildings in our town centres, which are of course empty department stores.

Even in a healthy town centre such as Taunton’s, the presence of one large building that remains empty can be a real problem. Whether or not it is suitable for a high street auction, the building in question in Taunton really needs attention; it needs to be dealt with, because it has been empty since 2021. Planning permission was sought in 2020 to demolish it and build apartments. That application was withdrawn, but it could have been refused. The Twentieth Century Society praised the building’s architecture and made it subject to a listing application, although it did not quite make the grade. It has an important place in the hearts of people in Taunton. It has 7,000 square metres of floor space, so it is a big building. Many believe that it could be saved and reused. It occupies a fantastic location, with the River Tone on one side, one of the key town centre streets on the frontage, and our fantastic Taunton castle on a third side, which has been the historic seat of government in the county of Somerset for hundreds of years.

One reason why the building might be suitable for refurbishment is that demolishing it would bring a requirement to carry out archaeological investigations. During the previous application, Historic England produced one of the lengthiest representations I have ever seen, which suggested that investigations would be required. If the building is not demolished, that work would not be needed, which would potentially be a much cheaper operation for the owners.

We have tried to engage with the owners of the building, but it has been challenging. The town council and groups of architects have brought forward schemes for the building, but they have been unable to get floor plans or really engage with the owners. I reached out and wrote to the owners via recorded delivery, email and all the other methods I could think of, and I was pleased that Ropemaker Properties recently came back to me. I am grateful to the company for offering to meet me and Taunton town council to discuss how this important building can be brought back into use, and for putting that meeting in the diary.

Finally, I urge the Government to think about the extent of these powers and whether big department stores should be completely excluded from them.