Guidance

Derelict Buildings Fund: interim guidance

Published 28 October 2026

Applies to England

The Derelict Buildings Fund (DBF) will provide £125 million to 60 local authorities to bring prominent long term vacant or derelict buildings back into productive community or commercial use. Allocations range from £1 million to £3 million and comprise capital and revenue funding.

This interim guidance explains the fund’s objectives, allocations, eligible activities and initial expectations for local authorities including community involvement. Further guidance, to be published later this year, will set out funding profiles, detailed project selection requirements and delivery arrangements.

1. Fund summary 

1.1 Context of wider programme 

The government has published Hope on the High Street, a new strategy for Britain’s high streets. The strategy is backed by a £210 million Community Assets Programme to support local communities in England to reimagine and revive their struggling high streets and build important neighbourhood anchors. This programme aims to tackle vacancy and dereliction, protect valued community assets, support co-operative development, and strengthen local capacity to create more resilient, mixed-use high streets.  

The largest share of this programme is a new Derelict Buildings Fund, investing £125 million across 60 English local authorities to transform prominent derelict buildings in their communities.  

This targeted funding sits alongside a range of government programmes already underway to support locally led regeneration. This includes the Pride in Place Programme, the Pride in Place Impact Fund, and the Local Regeneration Fund. While these programmes have distinct objectives, they share an ambition to strengthen communities, improve the places and spaces valued by local people and support the renewal of high streets and neighbourhoods.

This interim guidance relates to the Derelict Buildings Fund only. Further guidance will be provided to support project selection, delivery timescales and set out expectations around local consultation. 

1.2 Strategic aims 

High streets and neighbourhoods are at the heart of our towns and communities, and their condition shapes how people feel about the places they call home. Prominent long term vacant or derelict buildings can become lasting symbols of decline, undermining confidence and holding back the wider high street. Yet bringing these sites back into use is rarely straightforward. Local partners often lack the capacity to intervene, while fragmented or unclear ownership, costly heritage requirements and differing incentives among property owners can leave important buildings empty for years. 

The Derelict Buildings Fund will help change that. It will give local authorities the funding and support needed to take action, whether through acquiring long-neglected buildings, addressing barriers to redevelopment, closing viability gaps, or supporting the transfer of valued local assets into sustainable community or commercial ownership. By unlocking projects that might otherwise stall, the Fund will help attract investment and turn visible signs of decline into opportunities for renewal.

The fund is focused on 3 core objectives: 

• Bring long-term vacant and/or derelict buildings back into productive community or commercial use. 

• Create examples of how high streets can diversify by hosting a greater mix of uses, including community assets and uses that increase footfall outside of traditional retail hours. 

• Build local authority capacity and capability to deliver high street regeneration projects.

2. Key upcoming dates 

The Derelict Buildings Fund will run from 2026 to 2030.  

October 2026 

• Announcement of Derelict Buildings Fund allocations and publication of interim guidance 

By end of 2026:  

• Local authorities should begin community engagement  

• Local authorities should also start to longlist buildings for support, identifying any feasibility, technical and professional support needed to develop viable proposals 

• Each local authority will receive a Memorandum of Understanding (MoU) and an initial allocation of revenue funding to support community engagement, project development and local capacity 

• MHCLG will publish detailed guidance setting out funding profiles, available support and delivery and monitoring arrangements 

By April 2027 

• Local authorities to provide first progress update to MHCLG; this will include detail on project selection and community engagement undertaken 

Spring 2027  

• Commencement of delivery phase 

• Tranche 1 delivery funding payment made to local authorities 

Autumn 2027  

• Local authorities to provide update to MHCLG on initial project progress

3. Place selection  

 Areas have been selected using quantitative indicators to assess local need.  

Method: 

1. We have selected local authorities with the highest levels of employment deprivation, using the employment sub-domain of the Index of Multiple Deprivation. 

2. The largest urban local authority within each Established Mayoral Strategic Authority area receiving support through the City Densification Fund was excluded. 

3. Funding is then distributed using a population-weighted formula, providing a proportionate allocation that reflects differences in local authority size. Scaled allocations range between £1 million and £3 million.    

See the full list of places and the details of our selection methodology.

4. Funding and assurance

4.1 Funding for each place

Each local authority will receive a scaled allocation of the £125 million fund proportionate to their local population. Funding will comprise a mix of revenue and capital grant. Overall grants to local authorities range from £1 million to £3 million. A detailed list of allocation per place is set out at Annex A.

Further information, including funding profiles, will be set out in the detailed guidance to be published this year.

The initial allocation of revenue funding should be used to undertake community engagement to identify potential projects, and commission the feasibility, technical and professional advice required to develop viable proposals.

4.2 The role of local authorities

The local authority for each Derelict Building Fund area will act as the accountable body for the funding. They will be responsible for receiving and administering the grant, ensuring compliance with all programme requirements, and overseeing delivery of projects.

Local authorities will be expected to put in place appropriate governance, financial management, and assurance processes to support effective delivery. This includes coordinating local community and/or commercial partners, managing risk, monitoring progress against objectives, and ensuring that funding is used in line with programme guidance.

Local authorities will need to ensure that they adequately separate their role as accountable body from corporate landlord and asset owner with a potential interest in buildings in scope.

4.3 MHCLG support

MHCLG will provide direct ongoing support to local authorities throughout the delivery process. We will set out further information on this support, including help to utilise existing local authority powers such as Compulsory Purchase Orders, in detailed guidance.

4.4 Use alongside other funding

DBF funding can be used flexibly alongside other sources of funding to support the delivery of projects. For example, places may wish to utilise DBF funding alongside other government or third-party funding. We encourage places to consider how the projects they are seeking to pursue can complement other government funding in the locality.

DBF funded areas are also encouraged to explore opportunities to attract additional investment. For example, where a building has commercial value and an interested end user, DBF could help bridge a viability gap and unlock a transformative project that might not otherwise proceed.

4.5 Project reporting and monitoring

Local authorities will not be expected to submit project plans for government approval in order to begin spending money. Instead, areas will be expected to report progress to MHCLG on a 6-monthly basis. This should include proposed project(s), spending, deliverables and a summary of community engagement.

First progress reports should be submitted by April 2027. The Tranche 1 delivery funding payment will be paid in the period April-June 2027, subject to submission of a progress report showing plans are progressing well and community engagement has taken place.

Further detail on the reporting process, and DBF metrics will be provided in detailed guidance.

5. Eligible projects

5.1 Type of project

Funding should be used to bring long term vacant and/or derelict buildings back into productive use for the benefit of the high street, town centre or local neighbourhood and the communities they serve. Projects should focus on prominent buildings whose restoration and reuse would help address visible decline, strengthen local confidence and support wider regeneration. Funding may support the acquisition, restoration and reuse of high street buildings, including shops, offices, former places of worship, department stores and other heritage buildings, pubs, theatres or cinemas.

Local authorities will have flexibility to determine the most appropriate projects and future uses, informed by local needs, community views and wider regeneration plans. The examples provided in this guidance are illustrative and are not intended to restrict locally led proposals.

The number of projects will depend on local circumstances, the scale and complexity of the proposed work, and the authority’s funding allocation. An area might decide, for instance, to draw together a number of different projects to achieve greater reach and impact of the fund, or one large statement project, depending on what is right for the communities involved.

5.2 Location

Local authorities should prioritise buildings located on high streets, in town or district centres, or that have the potential to become important anchors within local neighbourhoods which lack a focal point for community life and public service access.

Buildings outside town centres and local neighbourhoods may also be supported where their reuse would deliver clear, direct benefits for the local community, for instance on a busy main road where the building features as a gateway. MHCLG will not prescribe fixed geographic boundaries to target investment within each local authority.

5.3 Project status

Authorities are encouraged to work with communities to identify new projects involving buildings that matter most to local people. Projects already under development may also be supported, including where a project has stalled or funding is needed to close a viability gap. Such projects must remain consistent with the fund’s objectives and demonstrate community support.

5.4 End use

Local authorities will have flexibility to determine the most appropriate future use for each building, informed by local needs, community views and wider regeneration plans. Proposed uses should be viable and sustainable over the long term, benefit the high street or town centre, and support the fund’s objectives. This could include community, cultural, commercial, public-service or mixed uses.

For example, locating public estates on the high street is an opportunity to drive footfall and improve access to essential services and employment. The NHS is shifting to a Neighbourhood Health model, with more services moving from hospitals to communities, as such we encourage local authorities and NHS Integrated Care Board to work together to identify locations for service provision that meet public health and regeneration objectives. Likewise, the expansion of family and youth hubs, as well as other local and regional initiatives might also support a sustainable use.

5.5 Ownership arrangements

Local authorities are not required to own or acquire the building(s) supported. They should, however, ensure that appropriate ownership, access and delivery arrangements are in place to deliver the project and secure its intended long-term use.

Local authorities should actively support sustainable models of ownership including exploring co-operative and other models of community ownership, where appropriate. In regions which are allocated funding as part of the Regional Co-operative Development Programme there is an expectation that these will be explored as complementary programmes.

Acquisition, compulsory purchase and remediation may be necessary or appropriate in some circumstances, depending on the project and local context. Further guidance, information and support for local authorities will be provided in due course.

6. Community involvement

The Derelict Buildings Fund should unlock transformation of the buildings that matter most to communities. Communities should be involved early enough to have meaningful influence over which buildings are prioritised and, where appropriate, how they could be brought back into use. The process of project selection should be a collaboration between the local authority and the wider high street ecosystem – including businesses, communities and investors.

All local authorities will be signposted to best practice community engagement resources, including those developed as part of the Pride in Place Programme.

As the local authority, you should:

• work alongside the local Member(s) of Parliament who will be Programme Champions and may choose to endorse specific projects

• ensure the fund is used to address derelict buildings which the community feel bring down the area, have become the focus of anti-social behaviour such as vandalism, or are holding back other important development in an area

• work to attract match funding to maximise the reach of the investment fund

• engage from the start and throughout the process, involving communities before key choices about projects and potential uses have been made

• reach a range of voices, using a mix of engagement methods and working with community groups and trusted local organisations to involve people and groups who may not participate through conventional channels

• create meaningful opportunities to influence, including inviting ideas, feedback and challenge on the buildings and uses being considered, and using participatory approaches where appropriate to enable communities to help shape priorities and proposals

• follow up with participants, explaining what you heard, how community involvement shaped decisions and, where suggestions have not been taken forward, why

Community involvement should help identify which buildings matter most to local people, priorities for their future use, and local knowledge about opportunities or barriers to bringing them back into use. Engagement should be proportionate to the scale and nature of the project, while taking place early enough for local insight to make a meaningful difference to the choices being made.

There is no formal requirement for local authorities to establish new governance structures to deliver this funding. Local authorities should make use of existing community relationships, groups or engagement channels to engage stakeholders or may create a new group or channel where appropriate.

Engagement should be tailored to local circumstances, bringing together the organisations best placed to support delivery and drive long-term change on the high street. Local authorities should ensure that key partners are meaningfully engaged in the identification of projects.

There is no defined list of organisations who need to be involved in the DBF process, the examples below are illustrative.

Local authorities will want to consider engaging the following types of groups:

• residents
• voluntary, community, faith and social enterprise organisations
• local businesses
• public agencies and anchor institutions
• cultural, art, heritage and sporting organisations
• property owners and investors
• neighbourhood level governance in the area, including town and parish councils

In addition, local authorities should engage with local councillors throughout the development and implementation of  proposals, as well as consider how they can support effective community engagement.

Where town and parish councils or existing neighbourhood governance arrangements are in place, local authorities should consider how these can support community engagement and help identify local priorities, including supporting the long-term sustainability of the project.

Local authorities are asked to engage with and seek support from a wider range of local stakeholders to identify projects. This will ensure that investment complements other activities in the area and achieves the greatest impact. As part of progress reporting, local authorities will be asked to summarise how communities and local partners have been involved and how their input has informed project identification and development.

Annex A: Place list with allocations

Local Authority Name	Local Authority Allocation (£m)
Ashfield	£1.23m
Barking and Dagenham	£2.25m
Barnsley	£2.39m
Blackburn with Darwen	£1.55m
Blackpool	£1.35m
Bolsover	£1.00m
Bolton	£2.92m
Bradford	£3.00m
Burnley	£1.00m
Calderdale	£1.99m
Chesterfield	£1.00m
County Durham	£3.00m
Darlington	£1.07m
Derby	£2.60m
Doncaster	£3.00m
Dudley	£3.00m
East Lindsey	£1.39m
Eastbourne	£1.00m
Enfield	£3.00m
Folkestone and Hythe	£1.06m
Gateshead	£1.91m
Great Yarmouth	£1.00m
Hackney	£2.51m
Halton	£1.24m
Haringey	£2.51m
Hartlepool	£1.00m
Hastings	£1.00m
Hyndburn	£1.00m
Isle of Wight	£1.33m
Kingston upon Hull, City of	£2.58m
Knowsley	£1.55m
Leicester	£3.00m
Mansfield	£1.07m
Middlesbrough	£1.44m
North East Lincolnshire	£1.51m
Nottingham	£3.00m
Oldham	£2.38m
Pendle	£1.00m
Plymouth	£2.56m
Preston	£1.55m
Redcar and Cleveland	£1.32m
Rochdale	£2.24m
Rotherham	£2.63m
Salford	£2.80m
Sandwell	£3.00m
Sefton	£2.71m
South Tyneside	£1.43m
St Helens	£1.79m
Stockton-on-Tees	£1.96m
Stoke-on-Trent	£2.57m
Sunderland	£2.71m
Tameside	£2.27m
Tendring	£1.50m
Thanet	£1.36m
Torbay	£1.32m
Wakefield	£3.00m
Walsall	£2.79m
Wigan	£3.00m
Wirral	£3.00m
Wolverhampton	£2.66m