Published 01 August 2013 | Standard notes SN06366
Authors:
Mark Sandford
Topic:
Local government
Part 5 Chapter 3 of the Localism Act 2011 provides for a scheme called ‘assets of community value’. Part of the Government’s community empowerment agenda, it requires a local council to maintain a list of ‘community assets’.
Nominations for community assets can be made by parish councils or by groups with a connection with the community. Individuals cannot nominate community assets. If the nomination is accepted, the group will be given time to come up with a bid for the asset when it is sold.
The right to bid only applies when an asset’s owner decides to dispose of it. There is no compulsion on the owner of that asset to sell it. The scheme does not give first refusal to the community group, unlike the equivalent scheme in Scotland; and it is not a community right to buy the asset, just to bid. This means that the local community bid may not be the successful one.
Certain types of land, most notably residential property, are exempt from being placed on the register. Owners of property placed on the register may appeal against its listing and can claim compensation if they can demonstrate its value has been reduced. Also, certain types of transfer of land or assets do not count as disposal for the purposes of the legislation.
The scheme was brought into effect on 21 September 2012. More information is available in a Community right to bid: non-statutory advice noteH, which was issued to local authorities in England by DCLG on 4 October 2012. DCLG has launched a community rights microsite, Hhttp://communityrights.communities.gov.uk/H, which provides information and support on a number of community empowerment initiatives.
The scheme is not the same as community asset transfer, which is also addressed within this note.