The Vacant Properties Bill: Could Councils Force Open Your Empty Units?

A new piece of proposed legislation is sending ripples through the commercial property world. The Vacant Commercial Properties (Temporary Use) Bill, introduced by Labour MP Luke Akehurst on 16 December 2025, proposes giving local authorities the power to allocate vacant commercial units to charities, community organisations and small businesses — potentially without landlord consent and rent-free. If passed, it would fundamentally reshape the relationship between property owners and local government.

What the Bill Proposes

The core mechanism is straightforward but radical: local authorities would gain statutory powers to identify vacant commercial properties and, after a defined period of emptiness, allocate them for temporary use by eligible organisations. According to BBC reporting, landlords of empty shops could be "forced to offer them rent-free to eligible occupiers."

The bill sits alongside the existing High Street Rental Auctions (HSRA) framework introduced under the Levelling Up and Regeneration Act 2023, which already gives councils enforcement powers over persistently vacant properties. But while HSRAs focus on compelling landlords to lease at market rent, this new Bill goes further — proposing rent-free allocation.

Key provisions under discussion

• Trigger point: A commercial property would need to have been vacant for a specified period (likely 6–12 months) before council intervention
• Eligible occupiers: Charities, community interest companies, social enterprises, and qualifying small businesses
• Terms of occupation: Temporary rights — the specific duration, legal structure, and conditions remain to be defined
• Rent: The Bill's proposals suggest rent-free occupation, with the occupier potentially responsible only for utilities and basic maintenance
• Landlord protections: Unclear — and this is where the most significant debate lies

The Political Context

This Bill doesn’t exist in isolation. It reflects a broader political consensus that long-term commercial vacancy is a problem that requires intervention. Consider the trajectory:

• 2023: Levelling Up and Regeneration Act introduced High Street Rental Auctions
• 2024: Empty Property Relief reset period extended from 6 to 13 weeks, cracking down on short-term occupation tactics
• 2025: High Court ruling (Principled Offsite Logistics) confirmed that artificial occupation schemes can be struck down
• 2026: This Bill — the most interventionist proposal yet

The direction of travel is unmistakable. Each year brings more scrutiny, tighter rules, and more assertive local authority powers. Landlords who assume the status quo will hold are positioning themselves for increasingly difficult conversations with councils and rating authorities.

Will It Actually Become Law?

As a Ten Minute Rule Bill — a type of Private Members' Bill — it does not receive legislative priority. It will only become law in its current form if there is unanimous consent from MPs, which is rare. However, there are three important reasons landlords should not dismiss it:

1. Government adoption: If the proposal proves popular, the government may adopt the legislative concept within its own legislative programme — potentially as an amendment to existing planning or rating law
2. Political signalling: The Bill signals the direction of policy thinking. Even if it fails as legislation, its principles may influence future regulation, guidance, or enforcement priorities
3. HSRA precedent: High Street Rental Auctions already give councils enforcement tools for vacant properties. This Bill would simply extend and strengthen those powers

What It Means for Landlords

Whether or not this specific Bill passes, the message to commercial landlords is unambiguous: leaving properties vacant for extended periods is becoming an increasingly untenable position — financially, legally, and politically.

The financial case is worsening

With the 2026 revaluation pushing rateable values up by 19.2% nationally, empty rates bills are increasing significantly. A landlord paying £45,000 per year in empty rates on a single property could see that rise to £53,000 or more from April 2026. Across a portfolio of vacant units, the cumulative cost is punishing.

The legal risks are growing

The 2025 High Court ruling in Principled Offsite Logistics made clear that artificial occupation schemes — where occupation is nominal rather than genuine — can be challenged and overturned. Councils are becoming more sophisticated in identifying and challenging questionable arrangements. The window for creative but non-compliant mitigation strategies is closing rapidly.

The reputational dimension

In an era of ESG reporting and stakeholder scrutiny, landlords with large numbers of persistently vacant properties face reputational risk. Institutional investors, in particular, are increasingly asking portfolio managers about vacancy strategies and community impact. This Bill would add further pressure to that conversation.

The Smarter Alternative: Proactive Beneficial Occupation

The irony of the Vacant Properties Bill is that it proposes a solution — temporary occupation by community organisations — that already exists in a more sophisticated, landlord-friendly form. VacatAd’s model demonstrates that vacant properties can deliver genuine community benefit while maintaining full landlord control.

By proactively occupying vacant properties through VacatAd’s technology-driven model, landlords achieve three objectives simultaneously: they reduce their rates liability through legitimate Empty Property Relief resets, they demonstrate genuine community benefit through free public connectivity, and they preempt exactly the kind of regulatory intervention this Bill proposes.

Key Questions Still Unanswered

The Bill, in its current form, leaves several critical questions unresolved. Legal analysis from Trowers & Hamlins identifies the following areas requiring clarification:

• Duration and security of tenure: How long would a temporary occupier be entitled to stay? Could they acquire security of tenure under the Landlord and Tenant Act 1954?
• Property condition and liability: Who bears responsibility for dilapidations, insurance, and health and safety compliance during temporary occupation?
• Impact on marketing: If a landlord is actively marketing a property for commercial letting, would they still be subject to council intervention?
• Compensation: Would landlords receive any compensation for the loss of use of their property? The current proposals suggest not
• Interaction with existing relief: How would temporary occupation under this Bill interact with Empty Property Relief periods and the 13-week rule?

What You Should Do Now

1. Audit your vacant properties. Identify any that have been empty for more than 6 months — these would likely be the first to fall under any new powers
2. Review your void strategy. Passive vacancy is becoming increasingly risky. Explore compliant beneficial occupation solutions that demonstrate genuine use
3. Understand the HSRA framework. If your properties are in areas where councils have already adopted High Street Rental Auction powers, you may already be at risk of intervention
4. Engage with the legislative process. The second reading is scheduled for 17 April 2026. Industry bodies and property associations are likely to make representations — ensure your voice is heard
5. Talk to us. VacatAd’s model is specifically designed to address the challenge this Bill seeks to solve — but on terms that work for landlords, not against them. Contact our team to discuss how we can help protect your portfolio

The Vacant Properties Bill may or may not become law. But the forces driving it — public frustration with empty high streets, government appetite for intervention, and tightening enforcement of empty property rules — are not going away. The landlords who will navigate this landscape most successfully are those who act proactively, establishing genuine, compliant occupation of their vacant assets before regulators and legislators make the choice for them.