The number of empty shop units on British high streets keeps climbing, but the story behind those figures is more complicated than it looks. Between March 2020 and March 2022 alone, more than 9,300 retail outlets disappeared from high streets across the country, according to a BBC News investigation. And the pace hasn’t slowed — another 2,284 outlets were lost in just the first six months of 2024, based on PwC analysis. Yet the House of Lords Built Environment Committee, which published its report “High Streets: Life beyond retail?” in November 2024, concluded that the dominance of retail on high streets was likely in the past — and that there could be an optimistic future if towns adapt.
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Those numbers paint a worrying picture. But alongside the closures, something else is happening. Empty units are being turned into co-working studios, NHS diagnostic hubs, food halls, and university extensions. The shift isn’t uniform — some towns are adapting faster than others. What separates the places that are finding their feet from those that aren’t comes down to a handful of practical decisions. Here’s what you actually need to know.
The Four Things Worth Knowing About High Street Reinvention
This isn’t about one type of high street failing and another succeeding. It’s about recognising that the purpose of a town centre has shifted. The committee’s report from late 2024 used the term Use Class E — the planning classification that covers shops, offices, cafes, and clinics — and recommended exploring whether it should be expanded to make it easier to convert large shopping centres into leisure spaces.
What I tend to notice is that the towns making progress aren’t waiting for a single national solution. They’re experimenting with what works locally — and that’s where the real lessons are.
When Towns Don’t Adapt, the Cost Adds Up
The 2,284 outlets lost in just the first half of 2024 isn’t simply a retail problem. Each closure affects neighbouring businesses, property values, and footfall patterns. When a key anchor unit sits empty, the shops either side of it see fewer visitors, which can trigger a second wave of closures. The impact of rising rent on UK small businesses compounds this — even viable traders can be pushed out when rates and lease costs stay high despite falling footfall.
Towns that don’t adapt also miss out on central government support. The committee’s report noted that the government responded to its findings in February 2025, and a House of Lords debate is scheduled for May 2025. But regeneration programmes require local authorities to act first — they need to involve local businesses early and develop a shared vision. Communities that wait for a national rescue plan tend to fall further behind.
The vacuum doesn’t stay empty for long in some places. But where local planning authorities lack a clear vision, the wrong kind of conversion can fill the gap — poor-quality residential conversions from permitted development rights that don’t improve the street and can actually make it worse for remaining businesses.
Why Some Regeneration Plans Miss the Mark
Not every high street effort fails because of money. More often, it’s the assumptions behind the plan that cause the trouble. The research points to several patterns where regeneration falls short, and they tend to share a few common threads.
Treating the High Street as a Retail Problem
The biggest gap is still the assumption that if you bring back shops, everything else will follow. The committee’s report explicitly states that the era of retail dominance is over. Yet many local plans still prioritise retail incentives over mixed-use developments. A town that pours money into filling empty shop units without also considering leisure, services, and public spaces is likely to see those same units empty again within a few years.
Ignoring How People Actually Travel
The committee recommended ensuring easy and safe access by car alongside better public transport connectivity and sufficient parking. Plans that focus only on pedestrianisation or cycling infrastructure without addressing car access can backfire — especially in smaller towns where public transport is limited. People need a practical reason to visit, and that includes being able to park when they arrive.
Leaving Local Businesses Out of the Conversation
Regeneration projects designed by councils or property developers without input from the traders who already operate there often miss the mark. The committee recommended that local businesses support and are involved in high street regeneration projects, and that local authorities empower local business leaders to drive the work. Where that doesn’t happen, the result can be a shiny new public space that doesn’t match what local traders or their customers actually need.
→ Scroll right to see all columns
| Approach | Old Assumption | What the Research Shows |
|---|---|---|
| Land use | Shops are the main draw | People want leisure, services, and public spaces too |
| Transport | Pedestrianise and restrict cars | Easy car access plus good public transport works best |
| Planning | Full permission required for each change | Flexible permitted development cuts delays from months to weeks |
| Leadership | Council or developer leads | Local businesses and residents must drive the vision |
What I’d add is that the most expensive mistake tends to be the first one — treating the high street as a retail problem. You can spend a lot of money filling shops that won’t stay filled if nothing else has changed around them.
What a Working High Street Looks Like Now
The towns that are finding their feet share a few practical patterns. These aren’t blue-sky ideas — they’re already happening, and the results are measurable.
Repurposing Empty Spaces for New Uses
Preston turned empty shop units into co-working studios, NHS diagnostic hubs, and food halls. Wolverhampton converted former department stores into university campus extensions. These aren’t half-measures — they change the entire function of the building. The planning reform that made this faster is the flexible permitted development framework, which cuts conversion time from months to weeks.
For local authorities and business groups navigating these conversions, getting the legal and compliance side right matters. Services like JustAnswer Business can help with practical questions around planning permissions, lease changes, and contractual issues when repurposing commercial property.
Building an Experience Economy That Pulls People In
Kirkgate Market in Leeds introduced evening trading and events. Within two years, footfall was up more than 20%. Manchester’s Northern Quarter attracts visitors as an independent-led destination. Smaller market towns like Shrewsbury, Frome, and Hebden Bridge built their reputations around artisan producers and community-driven events. The common thread is that people travel for an experience — not just to buy something.
Tools that help people discover what’s happening locally also play a role. Town centre apps and loyalty schemes for local spending give small traders a way to compete with larger online platforms. AI-driven marketing tools like MagicFit can help independent businesses create social content and promotional material without a dedicated marketing team.
Using Data to Make Smarter Decisions
Cheltenham Borough Council invested in footfall sensors that provide real-time data to traders. That means a café owner can see whether morning footfall is dropping and adjust opening hours or offers accordingly. Data-driven footfall analysis helps local authorities decide which streets need investment and where pedestrian flows are weakest. The committee also recommended that local authorities ensure residents participate in decision-making through formal consultations and partnership working — so the data is paired with real community input.
Emerging Rules for Residential Conversions
One area that’s still being worked out is the conversion of commercial properties into homes. The committee recommended that the government review permitted development rights policy for converting Use Class E properties into homes, specifically to examine the impacts. Poor-quality residential conversions without proper oversight can harm a town centre by removing ground-floor activity and creating unattractive streetscapes. Anyone involved in a conversion project should check whether the local planning authority has set clear quality standards before proceeding.
- Check your local planning authority’s vision for the town centre before starting any conversion
- Talk to existing traders about what the area actually needs — not just what’s easiest to build
- Prioritise mixed-use developments that combine retail, leisure, and services on the same street
- Ensure car access and parking are part of the plan, not an afterthought
- Use footfall data and community consultations together — one without the other is incomplete
Questions People Often Ask About High Street Changes
Are all high streets declining, or only some? ▾
What happens to empty shops that nobody wants? ▾
Can permitted development rights cause damage to a high street? ▾
How do small businesses fit into regeneration plans? ▾
What role do local councils actually play? ▾
Is the decline irreversible for some towns? ▾
The Shape of the Future Depends on Local Choices
The House of Lords committee will debate its report on 13 May 2025, and the government has already responded. But no single debate or policy change will fix every high street. What separates the towns that adapt from those that don’t is the willingness to stop treating the high street as a row of shops and start treating it as a mixed-use space where people live, work, eat, and meet. That shift is already underway in places like Preston, Wolverhampton, Leeds, and Shrewsbury — and the blueprint is public.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Government Support for Small Businesses Facing Challenges in the UK.
Sources and Further Reading
How Chambers of Commerce Support UK Businesses Through Tough Times — Practical examples of how local business networks are already helping high street traders adapt to changing conditions.
Breaking Down Silos: Fostering Collaboration in UK Businesses — Why partnership between local authorities, landlords, and traders is the foundation of successful high street regeneration.
House of Lords Built Environment Committee (2024). High Streets: Life beyond retail? 🔗
Centre for Retail Research (2019). Retail Administration Data. 🔗
BBC News (2022). High Street Closures Investigation. 🔗
Office for National Statistics (2024). Retail Footfall and Vacancy Data. 🔗
