A new Bill could allow local authorities to allocate vacant commercial units for temporary use, raising key questions for landlords and prospective occupiers.
A Labour MP has introduced a bill to enable local authorities to allocate for temporary use by charities, community organisations and small businesses any vacant commercial properties during the period of their vacancy. The bill was first heard on 16 December 2025 and is due to progress through its next stage in Parliament on 27 February 2026.
Empty units lead to decreased foot traffic and community vitality, which can discourage further investment in surrounding areas. By enabling temporary occupation during periods of vacancy, the Bill aims to encourage activity on high streets, provide opportunities for small businesses and charities, and reduce the negative impact of empty premises on local vitality.
The intention aligns with broader regeneration and social value objectives, particularly the desire to create more resilient and community focused commercial environments. However, any workable scheme must provide enough certainty for temporary occupiers to operate effectively, while preserving landlords’ ability to manage risk, protect their assets and secure long term tenants without undue constraint.
Key questions include:
- How will local authorities identify and allocate eligible properties?
- What form will the temporary rights take? Including the legal structure, the rent payable (if any), duration and the extent to which security of tenure will be excluded.
- How will commercial, community and regulatory interests be balanced?
The objective to promote a thriving built environment is positive, but the practical mechanisms for delivering temporary use will determine how workable the scheme is for both landlords and occupiers. While the Bill is at an early stage and we do not yet know whether this will gain the support necessary to make it law, landlords will be concerned to ensure that their interests are protected and the freedom to deal with their property interests is not curtailed.
