Islington Council's Executive has backed a new strategy aimed at tackling the issue of empty shops on the borough's high streets, with a focus on Caledonian Road.
At a meeting on Thursday 25 June 2026, councillors agreed to designate the Caledonian High Street Area for the use of High Street Rental Auction (HSRA) powers. These powers, introduced under the Levelling Up and Regeneration Act 2023, enable local authorities to address long-term vacant commercial premises.
What defines a 'long-term vacant commercial premise'?
HSRA powers can be used where a premise has been vacant for at least 12 consecutive months (or 366 days within a two-year period). In addition to the vacancy criteria, the local authority must be satisfied that bringing the premises back into use would deliver a 'local benefit' condition, contributing to the economic, social or environmental wellbeing of the area.
The decision follows a statutory public consultation on the proposed designation area, which ran from 19 May to 16 June 2026. A clear majority of respondents (78.4%) agreed that the proposed area was appropriate.
Councillor James Potts, Executive Member for Inclusive Economy and Planning, presented the report, highlighting that Caledonian Road has the highest vacancy rate of shop units in the borough. He noted that these powers enable local authorities to work with landlords to bring vacant premises back into positive use and support the local economy.
Ensuring 'positive use' aligns with community needs
The HSRA legislation requires that the local authority must be satisfied that bringing the premises back into use would deliver a 'local benefit' condition, contributing to the economic, social or environmental wellbeing of the area. Feedback from the public consultation on the proposed designation area for Caledonian Road indicated a strong preference from respondents for independent businesses and a wider mix of uses, including cultural, community, and independent/specialist retail, while discouraging additional betting, vape, and fast-food outlets. The Council can seek to deter undesirable uses through mechanisms such as the local benefit condition.
The HSRA process involves a structured three-stage approach: a pre-HSRA period of designation and landlord engagement, a notice period with a landlord response window, and finally, an auction period if voluntary action is unsuccessful. The entire process is expected to take approximately 22–24 weeks from initiation to completion. This includes a pre-HSRA period, a notice period (with an 8-week landlord response window following an Initial Notice, and a Final Notice if no satisfactory tenancy is secured), and a 12-week auction period.
An initial pilot phase, supported by £50,000 of Greater London Authority (GLA) funding, will be targeted in Caledonian Ward. This funding will support delivery costs associated with the HSRA process, such as marketing and auction administration.
Landlord implications
Where voluntary action is unsuccessful, local authorities can require the property to be let through a transparent rental auction that encourages bids at a fair market rent. Successful bidders are granted a tenancy of between one and five years. While the meeting information does not explicitly detail financial penalties for landlords who do not voluntarily bring their vacant properties back into use, the HSRA process itself implies a mechanism to compel letting through auction.
Councillor Potts expressed optimism about the potential of these powers, citing examples from other local authorities where similar interventions have led to significant reductions in high street vacancies. He stated, The hope is that we'll get these powers, we can make this designation and then we will work with landlords to hopefully bring some of these shops back into use.
Executive members welcomed the proposal, with Councillor Checkman noting that it had the potential to make a huge difference to our town centres that we know are really struggling.
Councillor Champion highlighted the inclusion of Barnsbury within the designation area, noting a particular property that has been empty for a long time. Councillor Stav welcomed the initiative from a community safety perspective, stating that anything that improves the Caledonian Road and fosters community cohesion is welcome.
Read the full decision details in the Executive meeting documents.
