Part 10Letting by local authorities of vacant high-street premises
Procedure for letting
I1I2203Rental auctions
1
A local authority may arrange for a rental auction to be carried out in respect of qualifying high-street premises if—
a
a final letting notice served by the authority is in force in relation to the premises,
b
c
either—
i
ii
the authority is satisfied that any tenancy, licence or agreement so granted or entered into is consistent with the contemplated exercise of its powers under section 204.
2
A “rental auction” is a process for finding persons who would be willing to take a tenancy of the premises further to a contract under section 204 and ascertaining the consideration that they would be willing to give in order to do so.
3
Regulations must make provision about the process.
4
The regulations must provide for the suitable high-street use of the premises to be specified by the local authority ahead of the auction.
5
The regulations must provide for the identification of a person as the “successful bidder” following a rental auction, except in cases where the regulations provide for there to be no successful bidder.
6
The regulations may, in particular, provide for a person who took part in the auction but would not otherwise be the successful bidder to be treated as the successful bidder if—
a
the landlord of the premises so proposes or agrees, or
b
it appears to the local authority that it will not be reasonably practicable to enter into a contract under section 204 with the person who would otherwise be the successful bidder.
7
The regulations may include provision about with whom, and on what terms, the local authority can enter into arrangements for the auction.
8
The regulations may allow local authorities to make choices as to procedure.
9
To the extent that the local authority has a choice as to procedure, the local authority must have regard to any representations made by the landlord.