Community Right to Bid

Only a “community interest group” can express an interest in bidding, unlike a nomination which can be made by a wider range of local community groups, including unincorporated local groups. This means a Parish Council in whose area the asset lies or any incorporated community group which meets these definitions:

• It has a local connection, meaning that its activities partly or wholly occur in the local planning authority area
• It is a charity, a company limited by guarantee, a Community Interest Company or an Industrial and Provident Society or Community Benefit Society

No, an expression of interest can be made triggered by any eligible local community group, not just the one who nominated the asset in the first place.

For an expression of interest to be sufficient to trigger the full moratorium, it only needs to make the request and come from a valid group – it does not need to provide any details of the nature of a bid, or demonstrate that a viable bid is even possible.

 Assessment of any bids will be up to the asset owner but include calling for a full business case, as per common approaches to asset transfer, where publicly owned assets are concerned.

 Where an asset owner is in the public sector, or is the local planning authority, they should provide helpful and relevant data to any community bidders that may assist the development of a business plan and raising finance

A ‘moratorium’ is a temporary suspension of the process. In this instance it does not prevent the sale of an asset, it delays the process to allow time for the community to put forward an expression of interest, produce a business case and secure the necessary funding if they wish to bid for the asset.

Some types of disposal are exempt from the moratorium process, even if the asset is listed. The Localism Act sets out a number of exemptions:

• Disposal through the gift of an asset
• Disposal of an asset containing a business which uses the asset and which is a ‘going concern’ (e.g. a shop still in operation)
• Companies in a group
• Disposals in the execution of a will or arising from various legal proceedings

Disposal of an asset that is part of a larger estate, part of which is not listed, but where the whole estate is owned by the same person and is a single lot of land

Some further exemptions set out in the Regulations include:

• Disposals from one NHS body to another
• Disposal of Church of England land holdings
• Disposals for ongoing educational provision
• Disposals between connected companies
• Disposals as a result of court order
• Disposals as a result of bankruptcy or insolvency

• The owner of the property is required to notify us as soon as they intend to dispose of a listed asset.
• This triggers a moratorium period of six weeks during which community interest groups can apply to be treated as potential bidders. At this stage groups must show a local connection and must have a legal status
• The owner will be able to begin the sale process after an interim period of six weeks if no bidder has come forward
• If a written intention to bid is received in that time then the full six month moratorium period will apply
• The sale itself takes place under normal market conditions.
• An eighteen month protection period has also been created: if this expires before the property is sold the original notification of the intent to sell process must start again

The Localism Act came into force on 15 November 2011. One of the principal provisions of the Act is to introduce new powers for local communities, including a “Community Right to Bid”.  This came into force on the 21 September 2012.

Through the provisions in the Act, local authorities are required to maintain a list of land and buildings nominated by local voluntary and community organisations as well as Parish councils as assets that are of value to the community. When listed assets come up for sale, community interest groups will be able to trigger a six month “window of opportunity” – a delay before the owner can dispose of the asset - to prepare a business case and secure the funding to bid to buy them on the open market.

This means proposing that a building or land is included in a register/list of buildings and land of community value.

This list will be maintained by the local authority. This type of listing should not be confused with the listing of buildings of special architectural or historic interest.

It aims to give communities a fairer chance to bid to buy community facilities and buildings such as village shops, pubs or community centres when they come up for sale.

Putting facilities on the list of ‘Assets of community value’ means that the owner can not sell it without giving the community the time to secure funding to bid for it themselves.

It is not intended to result in a comprehensive list of all assets of community value in the local area.

It is not intended for assets in public or other ownership that will remain in public use.

There is only a benefit in listing an asset if it is likely that it might be put up for sale by the owner. It does not override individual property rights and it is not a right to buy.

An ‘asset of community value’ is an asset that furthers the social well-being or social interests of the local community (or has done in the recent past). ‘Social Interests’ can include cultural, recreational and sporting interests. For example, assets of community value could be village pubs and shops, community centres and library buildings.

its actual current use furthers the social wellbeing and interests of the local community, or a use in the recent past has done so; and

that use is not an ancillary one; and

for land in current community use it is realistic to think that there will continue to be a use which furthers social wellbeing and interests, or for land in community use in the recent past it is realistic to think that there will be community use within the next 5 years (in either case, whether or not that use is exactly the same as the present or past)

The following are the exemptions which preclude the asset from being listed:

Land and buildings which are primarily residential in purpose

Licensed (and some unlicensed) caravan sites

‘Operational land’ as defined in s263 Town & Country Planning Act 1990 – which is land owned by organisations like the Post Office, Civil Aviation Authority, Transport providers, utilities, etc.

In addition, the Act excludes:

The listing of assets which might have a community value in the future but which have not been used for that purpose for a long time – e.g. an area of derelict land that has been unused for some years. Assets are only apt to be listed by virtue of their present or recent use, not just by planned future uses.

The listing of assets which are occasionally used for the social benefit of a local community but which are not primarily used for this purpose – e.g. a space used for an annual village fête. This would be deemed as an ancillary use.

No, you need to be from what the Act classes as a ‘relevant body’, that is:

 A Parish Council in England, or a Community Council in Wales;

An unincorporated group with at least 21 members who are on the electoral register in that local planning authority area;

Neighbourhood forums (as established by the Localism Act 2011);

Company limited by guarantee;

Community interest groups – legally constituted community organisations such as charities, Community Interest Companies, Industrial & Provident Societies, etc.

By completing the Nomination form which is available on the council’s website and returning it by e-mail to the address shown on the form or by posting it to the address shown on the form.  This requires you to provide details about:

1. Your organisation
2. The asset you wish to nominate
3. Why you believe it is of community value

As the Council is responsible for assessing all nominations we are unable to help groups complete the form. The guidance that goes with the nomination form explains everything that needs to be included.

No, because planning policy determines permitted uses for particular sites. However, the fact that the site is listed may affect planning decisions – it is open to the Local Planning Authority to decide that 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.

The Council will assess all nominations against criteria set by Government and list those assets which:

1. Are judged to be of community value in contributing to social well-being; and,
2. Are located within the local planning authority area; and,
3. Have been nominated by an eligible organisation

If there is a problem with the form itself then you will be contacted within 14 working days.

If the form has been correctly completed then you will be notified within 8 weeks. If a nomination is not successful, we will write to the nominator and give the reasons why within 8 weeks.

The owner will be contacted when a nomination is received so that they can comment on whether they feel the asset meets the criteria or not.

If the Council approves a nomination but the owner does not agree with the decision, the owner can ask for a review, and if that does not succeed, they can take the issue to an independent tribunal.

The Council will publish both a list of assets of community value whose nomination has been accepted and also a list of those which were unsuccessfully nominated.

The lists will be available as an Excel spreadsheet on the Council website, with hard copies also available to local people who prefer that. The lists will be free of charge. The assets on the list will be easily searchable by location and type of use.

Assets which are assessed as being of community value will stay on the list for five years. After this time they will need to be nominated again in order to be put back onto the list.