What is an Asset of Community Value?
An Asset of Community Value is land or buildings that have the main purpose of furthering social interests of the local community i.e cultural, recreational and sporting interests. These interests are nominated by a local community group and which the council decides meets the requirement in the Localism Act 2011 to be listed as an asset of community value.
Assets of Community Value can include schools, theatres, open spaces, village halls, or even pubs.
The Community Right to Bid
The community right to bid was introduced to enable local community groups to nominate buildings or land for listing by the local authority as an Asset of Community Value.
When buildings and land listed as Assets of Community Value come up for sale or change of ownership, a moratorium on the sale of up to six months can be invoked, providing the local community group with an opportunity to buy the asset on the open market.
There is no right for the community to buy the asset, nor is there a right of first refusal on a sale. Instead, the local community group is simply entitled to bid for the asset (and given time to prepare a proposal for the asset. The owner of the asset is free to choose who to sell the asset to and how much.
How do we know whether an asset is an Asset of Community Value
The local authority must publish a list of Assets of Community Value of which must contain the following information:
- Title and Function of the asset;
- Address of the asset;
- Nominating Community Group;
- Whether the listing has expired;
- Subsisting Appeals;
- Land Registry Entry and
Removal from the list of Assets of Community Value
Assets remain on the list of assets of community value for a maximum of five years beginning with the date of that entry, at which point they have to be removed from the list, unless they have been re-nominated and re-listed subject to local interest and continued compliance with the definition of an asset of community value. A local authority also has an ongoing power to remove an asset from the list before the expiry of the five-year period, where for any reason, it no longer considers that the asset is of community value.
The local authority is also under a duty to place a restriction on the Land Registry title. This restricts an owner from selling the property without complying with the requirements of the local authority in respect of the Asset of Community Value.
We can help
If you own a ‘listed asset’ or you are looking to purchase one, please contact Jacqueline Ross in our Commercial Property team or email firstname.lastname@example.org