Community Right to Bid: assets of community value

The Localism Act 2011 gave local communities new powers, including a Community Right to Bid. Local authorities have to maintain a list of land and buildings which are, or have recently been, of value to the local community. These are called Assets of Community Value (ACVs) and are nominated by local voluntary and community organisations and parish councils. Examples of assets are village shops, pubs, sports fields and community centres.

When listed ACVs come up for sale, community interest groups are able to trigger a six-month window of opportunity or “Moratorium” – a delay before the owner can dispose of the ACV. This enables the community interest group to prepare a business case and secure funding to bid to buy the ACV on the open market.

List of assets of community value (ACVs)

Our assets of community value master spreadsheet [Excel 5.24 MB] shows:

  • a list of ACVs
  • unsuccessful nominations
  • expired assets

Nominate a building or land as an ACV

Nominations can be made by:

  • local parish councils
  • community groups (an unincorporated group with at least 21 members who are registered to vote in the district)
  • local neighbourhood forums
  • industrial and provident societies
  • companies limited by guarantee
  • charities
  • community interest groups

To nominate an asset, groups must provide:

  • the address of the property
  • details of the owner
  • the extent of the site
  • why they feel it is an asset of community value
  • evidence of eligibility to nominate

Evidence of community use is also required so that we are satisfied that the nominated property meets the test for community value. This can be in the form of witness statements describing use of the property by groups such as sports clubs, social interest groups, community clubs and local village meetings.

Supporting information should include:

  • details and dates of meetings which take place
  • how frequently meetings occur
  • how many local residents participate or attend
  • which section of the community attends
  • written statements from members/participants/organisers to confirm that they regularly attend the activities and live locally

If you want to have an informal chat, or have any queries before submitting a nomination, contact [email protected]

To comply with our obligations under Part 5, Chapter 3 Localism Act 2011, we will consider all nominations received and make a decision within 8 weeks of receipt.

If the nomination is successful, the land or building will be added to our register of assets and will remain on the list for 5 years.

Listing public houses as ACVs

Pubs are not automatically listed as ACVs. There are no specific types of property that will automatically pass the Localism Act Section 88 test for community value. Evidence must be supplied on a case-by-case basis.

Online form to nominate a building or land as an ACV

Start

Our decision on your application

We must include the ACV on the list if:

  • a community organisation nominates land or buildings that meet the definition of an ACV
  • the nomination process was undertaken correctly (i.e. came from a group entitled to nominate)

The listing of a property as an ‘Asset of Community Value’ lasts for five years. After this it is automatically delisted and the restrictions are removed. However, communities can apply for the listing to be renewed.

If we decide that the nomination does not meet the criteria, we will write to the group who nominated the ACV to provide an explanation. Groups do not have any right of appeal against a decision not to list the ACV.

We will keep a list of unsuccessful nominations for at least 5 years. We will also maintain a list of expired ACVs.

Buying and Selling ACVs

The owner of an ACV must email [email protected] if they wish to sell the ACV. We will notify the community group that nominated the asset as they then have the opportunity to register their interest as a potential bidder.

If a group wants to buy the asset, they can trigger a moratorium for 6 months, to give them a chance to raise the money to purchase the asset. The owner does not have to sell to a community group. The asset of community value listing only improves the chances of community groups being able to purchase by providing more time to raise funds. It does not require the owner to sell at a discount.

Appeals from owners of ACVs

The owner of any nominated assets will be informed when a nomination is received so that they can comment on whether they feel the asset meets the criteria or not. If we approve a nomination but the owner does not agree with the decision, the owner can ask for a review. This must be done within 8 weeks of the decision. The owner will be notified of the outcome of the appeal within 8 weeks.

To make an appeal, email [email protected].

If the owner still has grounds to question a decision to list, they can make an appeal via the independent First-Tier Tribunal within 28 days of notification of the internal review decision. Find out more about how to appeal against a listing decision.

Bid on a building or land that is being sold

If the nominating group is keen to develop a bid to purchase the ACV, they can fill out the expression of interest form.

This starts a 6 month period or “Moratorium” during which an asset can only be sold if it is to a community interest group. After the 6 month period, the owner can sell to whomever they choose.

Moratorium period

If an owner decides to sell the property or land that is listed as an asset of community value, they must inform the local authority. This information triggers the moratorium process, which lasts for 6 months.

This provides local community groups with a better chance to:

  • raise finance
  • develop a business plan
  • to make a bid to buy the asset on the open market

The Community Right to Bid does not give the right for first refusal to community organisations to buy an ACV.

There are 2 parts to the moratorium period. Both start from the date that the owner tells the local authority of their intention to sell the asset listed:

  • the Interim moratorium period lasts for 6 weeks. During this time a community organisation can decide if they want to be considered as a potential bidder
  • the Full moratorium period lasts for 6 months. During this time a community organisation can develop a proposal and raise the funds needed to bid to buy the asset

Notice of intention to dispose of an asset of community value

We have received notification from the owner of intention to dispose the following assets:

The George & Dragon Public House
32 The Green
Quainton
Bucks
HP22 4AR

Notification of sale received: 18 May 2022

6 week moratorium period end: 29 June 2022

6 month moratorium end: 18 November 2022