Empty shops and unused commercial space have become familiar sights on high streets and in main streets throughout the UK. These places are not only lost economic value — they compromise community morale, footfall, safety and local culture. One of the ways the UK government has sought to tackle this head on is through a targeted funding programme designed to re-energise these dormant assets.
Previously known as the Empty to Energised pilot grant scheme, this programme provides a significant opportunity for local authorities and partners wishing to convert their underused buildings into usable, community facilities. For council officers, regeneration consultants, property stakeholders and community organisations, this guide sets out everything you need to know – and do – to position your project for success.
What is the Empty to Energised Pilot Grant Scheme?
The Empty to Energised Pilot Grant Scheme is a UK government–funded regeneration programme designed to bring green shoots and relatively short-term economic activity into long term empty commercial premises. The fundamental aim is simple but effective: this helps to reduce vacancy rates and breathe new life into the high street by finding sustainable and innovative reuse for empty buildings.
The initiative is centered on buildings which have been empty for an extended period, and backs projects that transform them into spaces that help local economies and people – be it as work offices, cultural venues, “community hubs”, or mixed-use developments.
The programme is delivered through Department for Levelling Up, Housing and Communities, aligning closely with the government’s broader Levelling Up and High Street Regeneration agendas.
Why This Grant Scheme Matters in 2026 and Beyond
Vacancy is no longer just a retail problem. Post-pandemic shifts, remote working, and changing consumer behaviour have left many town centres with surplus commercial space. Left untreated, these empty units can lead to:
- Reduced footfall and local spending
- Increased anti-social behaviour
- Lower investor confidence
- Declining property values
The Empty to Energised Pilot Grant Scheme directly addresses these issues by lowering the financial risk of re-purposing vacant buildings and encouraging experimentation with new uses.
Strategic Benefits at a Glance
- Economic regeneration – new jobs, businesses, and visitors
- Community value – spaces designed around local needs
- Sustainability – reuse of existing buildings instead of new builds
- Speed to impact – faster delivery compared to large capital projects
Who Can Apply for the Empty to Energised Grant?
Applications are typically led by local authorities, but successful projects often involve collaboration with a wide range of partners.
Eligible Applicants & Partners
- Local councils and combined authorities
- Town centre partnerships
- Property owners and landlords (via council-led bids)
- Community organisations and social enterprises
- Cultural and creative sector operators
Key point: While individuals and private companies usually can’t apply directly, councils are encouraged to work closely with them as delivery partners.
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What Types of Projects Are Funded?
The scheme is deliberately flexible, encouraging innovative and locally-relevant ideas rather than one-size-fits-all solutions.
Commonly Supported Uses
1. Flexible Workspaces
Repurposing empty shops into co-working hubs or studios for freelancers, startups, and SMEs.
2. Community & Social Hubs
Spaces for youth services, skills training, health outreach, or community events.
3. Cultural & Creative Venues
Pop-up galleries, performance spaces, maker labs, or creative incubators.
4. Mixed-Use Conversions
Combining retail, workspace, residential, or community functions in one building.
5. Meanwhile Uses
Short-term, low-cost activations that test demand while long-term plans develop.
What Can the Grant Be Used For?
Funding is typically capital-focused and designed to remove barriers that prevent properties from being reused.
Eligible Costs Often Include:
- Refurbishment and fit-out works
- Compliance upgrades (fire safety, accessibility, energy efficiency)
- Professional fees (design, surveys, project management)
- Temporary works to enable meanwhile use
Revenue costs (such as staffing or ongoing operations) are usually limited, so projects must demonstrate long-term financial sustainability.
How Much Funding Is Available?
As a pilot scheme, funding allocations can vary by round and region. Rather than a fixed amount per project, bids are assessed on value for money, impact, and deliverability.
Strong applications clearly show:
- Why the level of funding requested is necessary
- How it unlocks private or community investment
- What measurable outcomes will be delivered
How Projects Are Assessed: Key Evaluation Criteria
To compete successfully, applications must align with the programme’s strategic goals. While criteria may evolve, successful bids typically demonstrate strength in the following areas:
1. Impact on Vacancy Reduction
Clear evidence that the project will bring a long-term empty property back into active use.
2. Deliverability & Readiness
- Property identified and secured
- Planning considerations understood
- Realistic timelines and budgets
3. Community & Economic Benefit
- Job creation or skills development
- Support for local businesses
- Inclusive and accessible design
4. Financial Sustainability
A credible plan showing how the space will operate after grant funding ends.
5. Innovation & Replicability
Projects that can inform future regeneration efforts or be scaled elsewhere score highly.
Step-by-Step: How to Apply Successfully
Step 1: Identify the Right Property
Focus on buildings that are:
- Long-term vacant
- Prominently located
- Suitable for conversion without excessive risk
Step 2: Build Strong Partnerships
Early collaboration with landlords, operators, and community groups strengthens credibility and delivery confidence.
Step 3: Define a Clear End Use
Avoid vague proposals. Be specific about:
- Who will use the space
- How often
- For what activities
Step 4: Develop a Robust Business Case
Include:
- Capital cost breakdown
- Operating model
- Risks and mitigations
- Expected social and economic outcomes
Step 5: Align With Local & National Strategy
Explicitly reference how your project supports:
- Local Plan objectives
- Town centre strategies
- Levelling Up priorities
Common Mistakes to Avoid
Over-ambitious timelines
Unclear long-term operator
Weak evidence of demand
Ignoring building constraints
Treating the grant as a standalone fix
Remember: the grant is a catalyst, not a complete solution.
Long-Term Impact: Why This Scheme Is a Big Deal
Although labelled a “pilot,” the Empty to Energised initiative is widely seen as a testbed for future regeneration funding models. Successful projects help shape national policy by demonstrating:
- What works in reducing vacancy
- How communities respond to new uses
- Which delivery models are most sustainable
For councils and partners, participation offers more than funding—it provides learning, visibility, and leverage for future investment.
Final Thoughts: Turn Empty Into Opportunity
The Empty to Energised Pilot Grant Scheme represents a rare chance to experiment, innovate, and deliver visible change in places that need it most. At a time when traditional retail-led regeneration is no longer enough, this programme empowers local leaders to rethink how space is used—and who it’s for.
If your town centre has empty buildings waiting for a new purpose, the opportunity isn’t just to fill them—but to energise them with life, value, and community impact.
