From loopholes to fairness: three paths for England’s empty property rules

Every empty shop on a high street costs more than lost rent. English councils lose well over £300m a year to empty rates avoidance; that’s money that would otherwise pay for local services. The units left behind often sit as dead space, while charities struggle to find somewhere to work from.

That is the focus of our latest feature in Open Access Government. In the October 2026 edition (pages 332 to 333), our Founder & Director Shaylesh Patel explores the hidden social and financial impacts of avoidance, and why England needs reform to protect councils, high streets and communities.

Three paths for England

The article sets out where England is now, what other nations have already done, and where we could be.

The present. England’s approach to business rates and empty property relief is neither sustainable nor fair. Loopholes let determined avoiders keep properties empty without paying, which removes the incentive to find a tenant or move a redevelopment forward, while also negatively impacting the local community.

The possible. Wales and Scotland have already reformed their rules. Scotland devolved empty relief powers to local councils. Wales extended its powers and doubled the minimum occupation period needed to trigger a fresh cycle of relief. Both deserve credit, though gaps remain.

The ideal. A system built on fairness that serves the deserving rather than the exploiters. The article suggests:

  • An independent General Anti-Abuse Rule (GAAR) body, overseen by people with a strong moral compass
  • Naming and shaming, or even criminalising, repeat offenders who exploit legal loopholes
  • Ring-fencing part of the recovered £300m to support the community sector and renew high streets
  • Actively promoting the charity-led route: a legitimate, existing tax relief that serves both the landlord and the wider community

Why this matters now

Things are moving. On 30th June, ASTOP was invited to give evidence as an expert witness at a Treasury Committee session, where ten MPs questioned experts from property, health and tax. Chair Dame Meg Hillier described it as the committee’s ‘first foray’ into this particular set of inter-related issues.

In July, the Court of Appeal ruled that box shifting to avoid empty rates is illegal. It is an important step, but more is needed. Newer workarounds such as ‘bogus bluetooth’ still need closing, along with questionable liquidations and phoenix companies, and the backlog of cases in the courts also needs clearing.

Earlier this year we showed what the alternative looks like.

In March 2026, when a sizeable and prestigious space fell empty at 50 New Bond Street in Mayfair, we turned it into The House of Fakes: a ‘mock shop’ that joined the dots between empty spaces, business rates and community impact.

Our visitors included government agencies, MPs, property advisers and charities, while, for six months, multiple charities were given vital rent-free space.

Read the article and join the campaign

You can read the full article in Open Access Government.

Our End Rates Avoidance campaign aims to move England from the present to the ideal, and to end the avoidance schemes are costing councils and communities so dearly.

More than 100 people have already signed. If you agree, please ask your local councillor or MP to add their name to our open letter.

If you are a landlord facing an empty property, there is a better route. A charity-led occupation provides rates relief within the rules, while giving a local charity the space to do its work.