Assets of community value
Many communities have local amenities and buildings that are of great importance to them and which contribute to the development of vibrant and active communities.
The Localism Act 2011 through the Community Right to Bid aims to encourage community-focused, locally led action by providing communities with an important tool to come together to save and take over assets which are significant for them. It gives communities the opportunity to identify assets of community value, have them listed and, when they are put up for sale, more time to raise finance and bid for them.
What is an asset of community value?
A building or other land is an asset of community value if its main use has recently been or is presently used to further the social wellbeing or social interests of the local community and could do so in the future. The Localism Act states that 'social interests' include cultural, recreational and sporting interests. There are some exemptions including residential property.
Who can nominate an asset of community value?
Eligible community organisations can nominate land and buildings for inclusion on the list:
- parish councils
- neighbourhood forums (as defined in Neighbourhood Planning regulations)
- unconstituted community groups of at least 21 members
- not-for-private-profit organisations (e.g. charities).
Community organisations must also have a local connection, which means their activities are wholly or partly concerned with the area, or with a neighbouring authority's area.
What happens next?
The local authority will decide on a nomination within eight weeks. If the nominated asset meets the definition of an Asset of Community Value and the nomination process was undertaken correctly, the asset must be listed. The owner of the asset can request a review of the decision though the asset remains listed during the review period.
Once an asset has been listed nothing happens unless the owner decides to sell it. If an owner wants to sell property/land that is on the list, they must tell the local authority. If the nominating body or another eligible community group wants to develop a bid to buy the asset, they can then call for the local authority to trigger a moratorium period of up to six months, during which time the owner cannot sell the asset. The owner does not have to sell to a community organisation and at the end of the moratorium period can sell to whoever they want and at whatever price they want.
The local authority must maintain and publish a list of both successful and unsuccessful nominated assets. Successful nominations remain listed for a maximum of five years unless sold during this time.
How to apply
Communities can identify land and buildings which contribute to their community's social well-being or social interest, including cultural, sporting or recreational interests and which can continue to do so in the future.
Where can I find out more?
Further information, advice and guidance on the Community Right to Bid is available from the My Community Rights website.
If you would like to discuss the Community Right to Bid process in more detail or a prospective nomination prior to completion and submission of a nomination form.