A closer look at the government’s Pride in Place Strategy and what it means for high street property owners.

With new proposals aimed at breathing life into empty premises, those holding vacant high street properties could soon face fresh responsibilities. So how might the government’s Pride in Place Strategy affect your high street property investment?

What is the Pride in Place Strategy?

On 25 September 2025, the government launched its Pride in Place Strategy, a 10-year plan aimed at revitalising some of the UK’s most disadvantaged communities and high streets. The overall objective of this national initiative is to enable people to shape their local neighbourhoods.

How does the government propose to deliver this strategy?

At the heart of the strategy is a commitment to invest in local communities providing up to £20m of funding over 10 years to support 75 areas within the UK. Crucially, the strategy aims to empower local communities, placing decision-making in their hands and helping them to shape the future of their own neighbourhoods.

Investing in communities to boost business

Investment is intended to support improvements to buildings, community spaces and public facilities, making high streets more attractive, and with a focus on high street and town centre revitalisation. The aim is to increase footfall and help small businesses to grow. As areas become more desirable, the hope is that property values and rental income will rise, offering long-term gains for property owners, landlords and investors.

But are there any concerns for high street property owners?

While this may sound like encouraging news for local residents and their communities, the new strategy could present challenges for some owners. Alongside its community-focused aims, the government’s approach introduces a series of proposed powers and requirements that may impact commercial landlords and high street property owners, including:

• The use of compulsory purchase powers for vacant high street properties

• Expansion of the Business Improvement District (BID) model

• Increased use of high street rental auctions

• New powers to limit the types of businesses permitted to open on the high street

Compulsory purchase process

Vacant retail units and derelict buildings continue to blight high streets across the country. In response, the government is bringing in reforms to the compulsory purchase process and land compensation rules introduced through the Levelling Up and Regeneration Act 2023. These changes aim to simplify the compulsory purchase procedure, reduce administrative burdens for local authorities and accelerate decision-making. 

While these powers are intended to support high street regeneration efforts, they may negatively affect long-term and strategic investment plans for property owners and result in financial returns that fall short of expectations. 

Potential roll-out of BIDs model

The government aims to encourage property owners to play a more active role in high street regeneration by proposing legislation to extend BIDs across the country. BIDs aim to unite local business owners through a shared business plan for a local community which will help to deliver targeted activities and improvements. These activities and improvements will be funded through a BID levy contributed by business owners in the area.

For many high street operators already under pressure, the additional expense of the BID levy could feel unwelcome and difficult to absorb.

Rental auctions could lower rents

Designed to tackle long-term vacancies and reinvigorate town centres, the scheme would allow local councils to auction leases for commercial properties that have been empty for over a year within a two-year window. Property owners would be required to accept a winning bid, potentially at a lower rent than they would otherwise have agreed to. As a result, landlords might face pressure to accept less favourable lease terms or tenants they would not normally choose simply to avoid triggering an auction.

Reduced control and risk of devaluation

Further proposals include giving councils greater authority to restrict certain types of businesses, such as gambling premises, from opening on the high street. This would allow local authorities to take a more active role in shaping the mix of outlets through tighter control over premises licences. While this approach is designed to create more balanced town centres, it may potentially limit the pool of potential tenants - especially in areas where gambling businesses are common occupants of vacant units. Over time, these restrictions could impact rental income and reduce the market value of affected properties, posing a risk to landlords’ investment portfolios.

Key takeaways for high street property owners

While the Pride in Place Strategy offers long-term opportunities for high street regeneration and the promise of increased footfall, it also introduces new challenges for high street property owners. To safeguard their investments, business owners should:

• Engage with communications from local authorities to stay informed about proposed changes around compulsory purchases, rental auctions, and business type restrictions.

• Review lease and investment strategies to prepare for potential impact from rental auctions and BID levies.

• Participate in any local BID consultations to ensure their interests are heard.

• Seek legal and financial advice to understand the implications of new powers and to mitigate risks through strategic planning.

Property owners should continue to keep a close eye on developments in the Pride in Place Strategy to ensure their property investments remain protected.