Local authorities spent nearly £4bn on commercial property assets between 2013 and 2017, a new study has found.

Carter Jonas, a national property consultancy, and Revo, a national membership organisation for retail property and placemaking, have carried out a detailed study into the challenges and issues facing high streets.

The research found councils spent around £3.8bn on commercial property assets between 2013-17, with Spelthorne BC, spending £477.1m, coming out on top as the biggest local authority investor.

Nearly half of the £3.8bn was spent on the acquisition of office space. Retail, including shopping centres and retail warehouses, accounted for nearly £1.2bn of spend.

The remaining investment was split between industrial (£500m), mixed-use (£100m) and leisure (£80m), with a small amount diverted to other alternatives.

The researchers also surveyed members of the public and private sector to identify the issues most affecting high streets.

Online shopping was identified by 28.4% of respondents as the biggest challenge for town centre businesses. Business rates (13.6%) and reduced demand for space from retailers (13.6%) were also singled out.

Over half of the respondents (53.1%) said investment in the public realm was the most important initiative for delivering town centre regeneration.

Nearly half agreed strengthening local and national town centre first policies and reducing business rates were also critical.

Head of regeneration at Carter Jonas, Dr Steve Norris, said: ‘Our research reveals that over 66% of respondents still see joint ventures partnerships as the preferred funding models for regeneration projects, so we hope to ignite fresh dialogue between the public and private sector to unlock new opportunities.'

Chief executive at Revo, Ed Cooke, added it is crucial for the public sector not to sever ties with the private sector.

He said: 'Given the pace of change in the retail sector in particular, it is imperative that the public sector draws on the expertise and resource available in the private sector to manage and re-position these assets, so they remain relevant, vibrant and income-producing.

‘Indeed, the future success of the UK's urban environments relies on better collaboration between the public and private sectors, and we will continue to play a lead role in bringing the two together.'