Propertymark supports the Welsh Government’s Transforming Towns Loans programme that supports local councils with town and city centre regeneration projects and has invested more than £62m since its launch in 2014.   

The news comes as the Welsh cabinet secretary for Housing and Local Government, Jayne Bryant, has made £10m in Financial Transaction Capital available to fund regeneration schemes throughout the nation.

The programme’s aim is to cut the number of vacant and underutilised sites and buildings to diversify Welsh town centre offers and boost footfall.

The money also encourages more sustainable uses for empty premises like leisure, and to help stop some of the activity from being relocated to edge of town development.   

Although the professional body agrees with the scheme, Propertymark recommends that the Welsh Government study the main reasons why commercial property is becoming vacant.     

On 2 December 2024, regulations came into force in England to auction off the leases of persistently empty high street shops under the High Street Rental Auctions powers of the Levelling Up and Regeneration Act 2023.    

The UK government claims this will form part of their strategy for town centres, which it states includes guarding small businesses from inflationary increases in business rates, and a commitment to permanently reduce business tax rates for retail, hospitality, and leisure properties from 2026-27.  

Propertymark hopes that the Welsh government will look at ways to provide local authorities with a more substantive role in repurposing vacant commercial properties for local need.  

Tim Thomas, policy and campaigns officer at Propertymark, said: “Propertymark welcomes the continued investment for the Welsh Government’s Transforming Towns Loans programme, which has invested over £62m in converting sustainable uses for empty premises, such as leisure, key services and conversion to town centre residential development to naturally boost footfall in town centre spaces.  

“However, the Welsh Government must do more to understand the root causes of why commercial property is becoming vacant alongside the introduction of measures that give local authorities a stronger role in tackling empty commercial properties. They must also consider support packages such as business rates relief and improving local infrastructure. Above all, the Welsh government must engage with commercial property agents, who have the best understanding of the communities where they live and work.”