Plan to auction leases on vacant Rugby town centre retail units

The proposals took another step forward this week with the cabinet voting to start a four-week consultation on the extent of Rugby’s town centre footprint in July.

If a majority of respondents agree with the map – they are not being asked about the validity of the scheme itself – all retail properties within it left vacant for more than 12 months over a two-year period will be eligible for the council to consider for the new scheme that is designed to revitalise towns.

The council’s report shows that the average vacancy rate in the retail sector was one in seven units in November 2024 but in Rugby it was almost one in four.

It makes clear that forcing landlords down this route would be a “last resort” but that the prospect of the measures coming in has already had a positive impact.

It reads: "Consultation and engagement with these landlords has already commenced and led to a positive outcome in one of the long-term vacant properties within Rugby. It is expected that this unit will be brought back into use in the coming months."

Cabinet member for growth and investment, digital and communications Councillor Louise Robinson (Lab, Admirals & Cawston) said: “I am really pleased that Rugby is going to be one of the first to adopt this capability locally.

“This will empower us to use those relatively new legal levers to ensure that properties that are empty are open for rent through an auction process.”

The idea gained support from political rivals.

Councillor Derek Poole (Con, Wolston & the Lawfords) said: “It is a good idea. It will take some time to see how it goes but hopefully, if it works, we can see some of the empty properties in the town used, particularly on the High Street and on Sheep Street.”

Councillor Jerry Roodhouse (Lib Dem, Paddox) added: “The devil will be in the detail. I’m not sure how many authorities have gone down this route yet but we need to send out a clear message from this council that we want to bring those units back into use.

“This is one of the tools but there will be others that we need to use to make sure we bring that life back into the town centre.”

The rules make clear the council would have to engage with landlords first and if it serves notice to make it a property part of the auction process, the landlord then has an eight-week grace period to find a suitable tenant of its own choosing that meets the authority's requirements.

Landlords can issue counter notices and appeal the decision but if it progresses as far as the auction process, bids will be invited and assessed over a 12-week period.

The report also says the council does not intend to bring a cluster of properties forward in one go in a bid to ensure the rental market does not become distorted.

The consultation on the town centre boundary is due to run from Monday, July 7, until Monday, August 4, while the council has until January 2026 to apply for funding for the project.