Islington Council to Tackle Empty Cally Road Shops, Islington 2026

Key Points

• Islington Council says it may use High Street Rental Auction powers to take control of long-term vacant shops on Caledonian Road.
• Around 18 per cent of shop units along The Cally are currently empty, the highest vacancy rate among Islington’s town centres.
• The council says the powers will be used as a last resort after efforts to work with landlords.
• High Street Rental Auction powers allow councils to auction leases for commercial properties that have been vacant for more than a year.
• Islington hopes the threat of intervention will encourage landlords to find tenants without formal council action.
• If the council takes control of a property, it could offer the lease to businesses already known to the authority.
• The council says it wants to prioritise independent shops and community-focused businesses, including bookshops, florists, rehearsal spaces and yoga studios.
• Planning chief Councillor James Potts said the policy could help prevent more vape shops and betting outlets from opening on the high street.
• Kaya Chatterji, head of Local Economies, said residents had shown strong support for the project.
• The trial will initially focus on The Cally before Islington considers extending the policy across the borough next year.

Islington (North London News) August 8, 2026 – Islington Council has announced that it will trial new powers to tackle empty shops on Caledonian Road, with the authority warning that vacant premises could eventually be seized and re-purposed if landlords do not co-operate.

The Town Hall says the project is intended to “breathe life back into the high street” by encouraging the owners of unused commercial properties to bring them back into operation. The policy will initially focus on The Cally, where approximately 18 per cent of shop units are vacant.

That figure is understood to be the highest vacancy rate of any town centre in Islington. The council says the level of empty premises has created a need for a targeted intervention, although it has stressed that compulsory action will not be its first choice.

The proposal is based on High Street Rental Auction powers, introduced by the Labour government in 2024. The powers give councils the option to intervene when commercial properties have remained vacant for more than a year. If the landlord does not agree to let the property, the council can seek to auction the lease to prospective tenants.

Islington Council says it will first attempt to establish dialogue with landlords and encourage them to identify suitable occupants. Only if those discussions fail will the authority consider using its legal powers to take the matter further.

How would the High Street Rental Auction powers work?

High Street Rental Auction powers are designed to give councils greater influence over long-term empty commercial properties. Under the system, a local authority can seek to bring a vacant premises back into use by arranging for the lease to be offered to potential tenants.

The process is intended to address properties that have remained unused for an extended period, particularly where the empty unit is affecting the wider appearance or economic performance of a high street.

In Islington, the council says it wants to use the powers as an incentive rather than as an automatic enforcement measure. The authority hopes that landlords will respond to the prospect of intervention by finding new tenants themselves.

Speaking to the Tribune, Islington’s planning chief Councillor James Potts described the power as “a bit of a stick in theory” but said the council did not want to use it unnecessarily.

“This power is a bit of a stick in theory, one that we don’t want to use,”

Councillor Potts said.

“But it does give us the power to go to landlords and basically try and get these unused shops into usage.”

He said the council would be able to speak to property owners and seek their co-operation before moving towards a formal auction.

“If we’re having good dialogue with these landlords, then we might not necessarily even need to go down this route,” he added.

“We hope it is the case that they will co-operate, and we can bring these shops into usage over the next few months without having to even use the power.”

Why does the council believe the policy could reduce vacancies?

Islington Council believes that the existence of the new powers may be enough to persuade landlords to act. The authority’s expectation is that owners will prefer to identify tenants voluntarily rather than risk the council becoming involved in the leasing process.

The approach has also been used by other local authorities. The report cited Bassetlaw in Nottinghamshire as an example of a council that trialled the powers and saw vacancy rates fall without having to intervene directly in every property.

That experience has encouraged Islington to test the policy on The Cally. The authority will assess whether the trial improves the number of occupied units and whether the process can be expanded to other high streets.

The council has not said that every vacant shop will be subject to an auction. Instead, the project will focus on premises that meet the relevant requirements, including those that have remained empty for more than a year and where attempts to secure a new tenant have not succeeded.

The authority’s wider aim is to support a more diverse high street. It says bringing empty units back into use could help increase activity, improve the appearance of Caledonian Road and create more opportunities for local businesses and community groups.

What types of businesses could be allowed into the shops?

If Islington Council eventually takes control of a lease, it will consider prospective businesses already known to the authority. Those businesses could be offered the opportunity to test their ideas on the high street at a discounted rent.

The council says this approach could help new operators trial their businesses without facing the full cost of a standard commercial lease from the outset. It could also provide an opportunity for smaller organisations that may struggle to compete for premises in a conventional letting process.

However, the authority says the properties will not simply be filled with any business willing to take them. It wants the eventual uses to provide a social or community benefit.

Councillor Potts was asked how the council would prevent the re-occupied units from becoming vape shops or additional gambling venues.

“There has to be a social value element to whatever we introduce into these shops,” he said.

“We are given a bit of a say that allows us to prevent it from becoming a vape shop or another bookie. Having that say allows us to make sure we don’t get businesses that might be a bit more troublesome.”

The council’s position means that prospective tenants could be assessed not only on their ability to operate a business but also on the likely effect of their presence on the wider high street.

What do residents want to see on Caledonian Road?

Kaya Chatterji, head of Local Economies, is leading the project for Islington Council. She said the authority had received a high number of responses from residents, with most respondents expressing support for the proposal.

According to Chatterji, residents had identified independent shops and community spaces as priorities for the vacant units.

“What residents have told us is that they want independent stores, so bookshops and florists,” she said.

“But also community use space, such as rehearsal spaces or yoga studios.”

The suggested uses reflect the council’s intention to encourage activities that bring people together and create regular footfall. Rather than focusing solely on retail, the project could include spaces used by community organisations, creative groups and local residents.

Chatterji said residents wanted uses that encouraged “social and community interaction and cohesion”. The council will therefore consider whether potential tenants can contribute to the wider character of The Cally.

The authority has not provided a full list of businesses that may be considered for the units. It has said, however, that it has knowledge of prospective operators who could be invited to take part if a lease is secured through the process.

When will Islington Council decide whether to expand the scheme?

The project remains in its early stages. Islington Council will begin by testing the approach on The Cally before reviewing the results.

The authority is expected to assess whether the trial brings vacant shops back into use, whether landlords become more willing to co-operate and whether the businesses selected can establish themselves successfully.

The council will then consider whether to extend the policy to other high streets across Islington next year. Any borough-wide expansion would depend on the outcome of the initial trial and the authority’s assessment of the resources and legal requirements involved.

The proposal forms part of a wider debate about unused commercial and residential property across London. The Tribune’s sister publication, the Camden New Journal, has been examining the issue through its ‘Wasted London’ series, which looks at the reasons behind the growing number of unused properties across the capital.

For Islington, the immediate focus will remain on the empty units along Caledonian Road. The council says its priority is to use engagement with landlords to avoid formal intervention, while retaining the option to act if properties continue to remain vacant.

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What is the background to the council’s decision?

The decision follows concerns about the effect of empty shops on local high streets. Vacant units can leave sections of a shopping street looking neglected and may reduce the number of reasons for residents to visit the area.

The Cally has the highest reported shop vacancy rate among Islington’s town centres, with about 18 per cent of its commercial units empty. The council says that figure makes Caledonian Road an appropriate location for the trial.

High Street Rental Auction powers were introduced by the Labour government in 2024 to give local authorities a mechanism for dealing with long-term vacant commercial premises. The powers allow councils to take a more active role where landlords have been unable or unwilling to secure tenants.

Other councils, including Bassetlaw in Nottinghamshire, have already tested the approach. In that case, vacancy rates fell without the council needing to take direct control of every property.

Islington Council now hopes the same possibility will encourage landlords to act. The Town Hall says it wants to avoid using the powers where possible, but believes the ability to intervene could improve negotiations with property owners.

The project is also linked to wider calls for councils to make better use of empty commercial spaces. Local residents who responded to Islington’s consultation expressed support for independent retailers and community facilities rather than a further concentration of businesses such as betting shops and vape retailers.

How could the development affect Cally Road residents and businesses?

The trial could give residents more opportunities to access independent shops and community facilities if vacant units are successfully brought back into use. Potential businesses mentioned by the council include bookshops, florists, rehearsal spaces and yoga studios.

For existing businesses, increased activity could create more footfall and encourage a wider range of visitors to the area. However, the effect will depend on how quickly suitable tenants are found and whether the council can agree leases with property owners.

Landlords may also face greater pressure to address long-term vacancies. Even if the council does not ultimately use its auction powers, the possibility of intervention could encourage owners to enter discussions with the authority and consider new tenants.

The outcome will become clearer after Islington completes its trial and assesses whether the policy has reduced the number of empty shops. The council is expected to decide next year whether the approach should be extended across the borough.