Assets of community value: What are they and why do they exist?

The Localism Act 2011 allows local community groups to bid for land or buildings that benefit the community, such as pubs or historic sites. This gives communities a chance to keep important places in local hands.

To qualify, the property must have recently helped support the community’s social wellbeing or interests, and it must be likely to do so again in the next five years. This is often the stage where a listing might be challenged.

If the owner of an ACV wants to sell, local groups have a chance to put together a bid and raise funds. The owner cannot sell to anyone else for six weeks. If no group shows interest in that time, the owner is free to sell to any buyer.

If a group does show interest within six weeks, the owner cannot sell to anyone else for six months.

The Listing Process

1. A community organisation can nominate land or buildings as an asset of community value. The local authority then decides whether to add it to their list of important community sites.

2. If the local authority decides not to list the land, or if the landowner successfully objects, the land will go on a separate list of sites that were nominated but not accepted.

3. If the landowner does not object, or if their objection is unsuccessful, the land will be listed as an asset of community value for five years.

Once land is listed as an asset of community value, the owner must notify the local authority before selling.

● The local authority will tell community groups about the sale. The six-week moratorium starts from this notification.

● If no group is interested or able to buy within six weeks, the owner can sell to any buyer.

● If a group does want to bid, the full six-month moratorium applies. During this time, the owner cannot sell to anyone except a community group.

● There is no requirement to sell to a community group. The rules only delay a sale to other buyers for six weeks or six months, depending on whether a group is interested.

● A landowner can ask the local authority to review its decision to list the property, and can appeal if needed.

Challenges, Appeals, and Compensation

ACVs prevent the owner from selling to anyone except local groups for either six weeks or six months. Yet this does not mean the owner must sell to a community group, it only means there is a delay before selling to other buyers.

An ACV can be challenged by the landowner: If the Local Authority decides to list the land as an ACV, the landowner can then challenge the listing within eight weeks.

The local authority may hold a hearing to consider the property owner’s views, but the review must be completed within 8 weeks of the property owner’s request.

If the review finds that the listing of the property as an asset of community value was valid, the property owner may appeal to the First-tier Tribunal. This appeal must be made within 28 days of the local authority notifying the property owner of the review decision.

The property owner may apply to the local authority for compensation when the listing of an asset of community value causes a delay in a sale due to the moratorium period.

What to note…

● The property owner is also entitled to recover reasonable legal costs if successful in challenging the listing of the property as an ACV on an appeal to the First Tier Tribunal.

● A claim for compensation must be made in writing to the local authority within 13 weeks of the loss or expenses incurred.

Talk to Orwins for Guidance Today

If you’re dealing with an Asset of Community Value or need guidance on any property or community-related legal matter, talk to us.

Our experienced solicitors at Orwins can explain your rights, guide you through the listing or appeal process, and ensure you’re protected.