Matt Vickers MP, Chair of the APPG on the Future of Retail, backs communities to tackle high street decline as empty shops reach tipping point following new report revealing more than 23% of shops across the North East stand empty and calls for a new fund to help local people secure empty property on the high street.
Stockton South MP, Matt Vickers, is backing local people to help tackle the accelerating decline seen on high streets across their constituency, as 23% of high street shops across the North East are sitting vacant.
A new report from Power to Change examines the latest retail statistics from Local Data Company - both vacancies and persistent vacancies - and found that high streets are at a tipping point, even in areas with historically stable local economies.
Power to Change is calling for a new £350million High Streets Buyout Fund that will help local communities secure property on the high street and support a transition away from the failing retail-dominated high street to new, diversified high street that puts community in the driving seat. It is specifically calling on government to invest £100million of Levelling Up Fund money to help capitalise the fund.
High streets need a new vision and purpose, and growing evidence shows that a community-led high street is the answer. Community-owned spaces contribute £220m to the UK economy, and 56p of every £1 they spend stays in the local economy, compared with just 40p for large private sector firms. Where there is community ownership on a high street, vacancy rates are reduced. Importantly, these spaces provide affordable, appropriate services and products for the community – they more nimbly meet shifting local demand than traditional high street occupants.
Despite the clear benefits of community ownership on the high street, community organisations and local people often face an uphill battle when trying to secure space in their town centres. Access to capital which can move at the pace of private investors is lacking. The skills necessary to navigate the commercial property market, whether renting or buying, exist in pockets but are not widespread.
Matt Vickers, Chair of the APPG on the Future of Retail said:
“I am enthusiastic about the support a High Street Buyout Fund would offer. High streets across the Stockton Borough are in desperate need for innovative solutions to keep them as the dynamic hearts of our communities. It is essential that we find new ways to aid communities who want to take back control of town centres and high street places that have lost their way. This would be an excellent initiative, combining the power of local people and community ownership to revitalise our high streets.”
Mark Robinson, Property Director and Co-Founder, Ellandi and Chair, High Streets Taskforce said:
“Vacant properties owned by absentee landlords are the scourge of community, holding back the transformation of our high streets. These proposals will give community groups the power and means to take back control to make change happen.”
Nick Plumb, Power to Change’s high streets lead, said:
“The evidence is clear, community ownership on the high street is essential to their survival and a High Street Buyout Fund will break down the barriers stopping local people getting a foothold on the high street property ladder. The nation’s high streets are at a perilous tipping point and if these much-loved community spaces are to survive, we need radical action now.”
The High Streets Buyout Fund
The new £350million High Street Buyout Fund will be a transformational measure to help communities purchase assets on the high street. An agile fund it will be able to move at the pace of private capital, to help local people secure empty high street buildings and compete with private investors who may not consider the best interests of the local area and community.
It will have the potential to transform over 200 neglected high street properties across the country by leveraging in £250m of private and commercial and social investment against £100m government grant, with the option of grant repayment after 12 years or the creation of a perpetual fund - making public money go further
A £350m UK-wide fund would allow for economies of scale, be attractive to institutional investors and allow for the purchase of a diversified portfolio of properties. Roughly 10% of the grant funding would be used to deliver support for community organisations to take on the high street properties, with the ultimate aim of them taking on the ownership as well as management of the assets.
An organisation would be established to manage the finances and purchase the properties, holding on to them until local community organisations were in a position to take on ownership. The governance of this entity would involve commercial property and investment experts, as well as experts in high streets and communities. Such an organisation would be able to act in agile and responsive way, would lead to strong expert input and focus on generating the best social and financial returns and would give the best chance of mitigating and managing risk.
New YouGov polling for Power to Change revealed that local communities are worried about the future of the high street and the negative impact its decline will have on the local economy and opportunities for young people. It also reveals local people are unhappy with remote ownership on their high street and are keen to see more buildings in community ownership.
- Three quarters (74%) of people are concerned that the decline of their high street will have negative impact on the local economy, resulting in fewer job opportunities for young people.
- Three quarters (77%) of people have seen an increase in the number of vacant shops and buildings on their high street.
- Rather than sitting empty, 72% of Brits think local people should have access to vacant buildings on the high street.
- Four out of five people (80%) want more profits from goods and services bought on their high street to stay in their community
- Two thirds of Brits (69%) are worried about decline of their local high street and the impact it will have on civic pride
- Two in five (39%) people say buildings on local high streets should be owned by local people with a vested interest in the success of a local area, whilst 37% feel distant high street landlords and overseas investors with no connection to the place where they own high street property has a negative impact on their area
