Lead Authority: Lambeth London Borough Council

Proposal theme: Regeneration and Economic Development: New powers to use empty commercial properties for 3rd sector/social enterprises; Improving the Local Economy

The current recession has had a deep impact upon businesses and high streets within the borough, and this in turn affects surrounding communities and the local economy. Empty shop fronts and vacant properties are obvious visual signs of an economy that is struggling. They also have a negative impact on local communities/their confidence on the local economy. In addition empty shops are potential targets for vandalism, ASB and other forms of crime.

This proposal therefore seeks to redress this issue by introducing new legislation whereby if a commercial property is vacant for a specified timescale, then the local authority is empowered to compel the freeholder to make the property available for temporary usage by third sector/social enterprise for a fixed period of time at a preferential rate. This legislation will be a key catalyst for reinvigorating high streets where the recession has made it difficult for commercial organisations to prosper.

Importantly it will also provide opportunities for social enterprises and cultural organisations, that would otherwise be priced out of the market at standard commercial rates, to have a visible presence in high street locations. This will also allow them to engage with a wider group of potential customers and raise awareness. An example of how this has worked in Lambeth has been in the Herne Hill area, whereby an empty shop, that previously was the Apollo Video Rental store, was used as a site to hold an arts festival during June 2009 hosting a range of local musicians and artists. This was supported by the local Herne Hill Traders Association, and was set up to reinvigorate the local community and economy.

Whilst the Herne Hill example demonstrates how local communities can generate change, if local authorities have greater powers in directing the usage of empty commercial assets then this can act as a catalyst within the area and provide a positive impetus in communities. Another example is the Roundhouse in Camden, north London, which became a thriving cultural venue in the 1960s and 1970s from a disused railway shed.

However a commercial asset has a value associated with it, so therefore further amendments to NNDR legislation will be required to allow properties that have been procured for use under this legislation will no longer have to pay business rates thereby providing an incentive to the freeholder to allow alternative use of their asset.

Government will need to introduce legislation that will provide local authorities to intervene and facilitate the usage of commercial properties that have been unused for six months or longer by social enterprises and cultural groups. In return provision by central government must be made so that properties used in this way are no longer required to pay business rates.

Given the nature of this proposal it will be important to ensure that the definition of vacant commercial properties is very clearly defined so as to minimise potential loopholes and areas for exploitation that might be utilised by freeholders.

This proposal will directly impact upon communities suffering from the decline of their local high street/commercial centre by creating more diverse usage of those assets which will in turn encourage higher levels of foot fall and commerce within the area. This will positively affect issues such as community cohesion and ultimately create positive regenerative effects within an area.