The ‘unintended consequences’ of High Street Rental auction powers that are given to local councils must be closely investigated by the British government, has urged the commercial advisory panel of NAEA Propertymk.
The Ministry of Housing, Communities and Local Government (MHLCG) has confirmed that more empty stores and other empty buildings will be transformed as the councils use new powers to breathe new life into High -Straten in England, which is part of the growth mission of the British government.
Propertymark supports the scheme, but when the professional body responded to public consultation on the measures in July 2023, they recommend that local authorities should have the power to design and implement high street auctions because they consider it suitable, depending on their area.
It also encouraged to guarantee that property subjects to a High Street Rental auction have a spare price to protect market prices and to ensure that the price covers the costs of any mortgages.
Note from NAEA Propertymark Commercial Advisory Panel Member Michael Sears said: “The British government must take into account the most important unintended consequence of these measures. In areas where there are high numbers of vacancies, by adding real estate to which the demand for the regeneration of regeneration and inserve investment is.
He added: “If a commercial rental assessment is due, the results of High Street auctions will be used as proof of market price by tenants of tenants? In that case, investments and lending of commercial property can become problematic, given the increased risk. There must be protections to prevent downward spiral.”