Assets of Community Value

Assets of Community Value

Community Right to Bid

The Community Right to Bid, introduced by the Localism Act 2011, allows local community or voluntary bodies and parish councils to identify and nominate land and buildings that are important to the community to be included on a list of assets of community value (ACVs). If an ACV is to be sold, local community groups will then in many cases have a fairer chance to make a bid to buy it on the open market.  Policy DM23 of the Mid Devon Local Plan Review (2013-2033) identifies community facilities as local shops, public houses, allotments, cultural and recreational facilities and other important local services; but there are many other examples.

These can be in private, public or even Crown ownership, but homes, hotels and Church of England land are all exempt.

The inclusion of an asset on the list of assets of community value however does not place any restriction on what an owner can do with their property, once listed, so long as it remains in their ownership. This is because it is planning policy that determines permitted uses for particular sites. However the fact that the site is listed may affect planning decisions - it is open to the council to decide whether listing as an asset of community value is a material consideration if an application for change of use is submitted, considering all the circumstances of the case.

Legal tests applied to a nomination of an Asset of Community Value:

Assets can be included on the  Council’s list of assets of community value if they meet the legal requirements set out in the Localism Act 2011 and The Assets of Community Value (England) Regulations 2012, summarised as follows:

The asset must meet the definition of an asset of community value:

• A building or land is of community value if, in the opinion of the local authority, the current or recent non-ancillary use furthers the social well-being or social interests of the community, and it is realistic to think that there can be continued use which will do so in some, but not necessarily the same, way. Social well-being and social interests can include cultural, recreational and sporting interests but this is not an exhaustive list.
• The asset must be, at least partly, in the local authority's area. Some assets may overlap boundaries with a neighbouring local authority.
• The asset must be nominated by a parish council, or a voluntary or community body with a local connection:
  • Voluntary or community bodies with a local connection must supply evidence of their status (for example, a copy of your constitution or terms of reference or, if an unincorporated body, details of 21 people with a local connection and on the electoral register together with evidence of a collective decision to nominate the asset). Eligible bodies can also be a charity, a community interest company, a company limited by guarantee that is non-profit distributing, or an industrial and provident society that is non-profit distributing.
• The asset must not be an excluded asset type. Excluded asset types, in summary, are:
  
  • A residential property, including gardens, outbuildings and other associated land that is reasonable to consider as part of the land with the residence. (This exclusion does not cover assets that contain integral residential quarters such as a pub or caretaker's flat)
  • Land licensed for use as a residential caravan site (and residential caravan sites that do not need a licence)
  • Operational land of statutory undertakers as defined in section 263 of the Town and Country Planning Act 1990, for example, Highways Agency land

The decision

When a property is nominated as an asset of community value, the owner will be informed and has the opportunity to comment on the validity of the nomination.

In reaching a decision we will consider the following:

• The information contained in your nomination
• Any supporting evidence submitted with your nomination
• The comments of the owner
• Any other relevant information 

The decision on whether the nominated asset should be placed on the ACV list will be made within eight weeks of receiving a valid nomination. 

Successful nominations are added to the Mid Devon List of Assets of Community Value.

If a nomination is unsuccessful we will add the asset to the Mid Devon List of land nominated by unsuccessful community nominations together with the reason for rejecting the nomination. 

The Owner's Right to a Review

If a property is then registered as an ACV, the owner has the right to an internal review by the Council of the decision to list. A request for a listing review must be made in writing within eight weeks of the notice of listing.

Removal of asset from the ACV list

An asset can only remain on the ACV list for 5 years after which time the council has to remove it as soon as practicable. Assets, however, can be re-listed if a new nomination is received and if the legal tests are satisfied.

An asset will also be removed from the list under the following circumstances:

• after a sale (other than after an exempt disposal)
• when an appeal against a listing has been successful
• when the council considers that the land or building is no longer of community value
  
  

How the Community Right to Bid works

If the owner decides to sell a property on the list, they must tell the council. If a community group wants to buy it, they can invoke their Community Right to Bid. This pauses the sale for six months to give them time to raise funds and submit a bid.

The community group does not have the right to buy the asset. At the end of the six month period, the owner can sell the asset to whoever they wish and at any price.

Information and advice on making a bid on an ACV is available from Locality on the myCommunity website.