Community right to bid for assets of community value
This new Right means communities can ask the council to list certain assets as being of value to the community. If an asset is listed and then comes up for sale, the new right will give communities that want it 6 months to put together a bid to buy it. This gives communities an increased chance to save much-loved shops, pubs or other local facilities.
Parish councils or local community groups can nominate both privately and publicly owned assets which meet the definition of community value.
A building or land in a local authority's area will be listed as an asset of community value if in the opinion of North Warwickshire Borough Council:
- current primary use of the building/land or use of the building/land in the recent past furthers the social well-being or social interests (cultural, recreational, or sporting interests) of the local community
- it is realistic to think that now or in the next five years there could continue to be primary use of the building/land which will further the social well-being or social interests of the local community (whether or not in the same way as before)
Owners of listed assets cannot dispose of them without:
- letting the local authority know that they intend to sell the asset or grant a lease of more than 25 years
- waiting until the end of a six week 'interim moratorium' period if the local authority does not receive a request from a community interest group to be treated as a potential bidder
- waiting until the end of a six month 'full moratorium' period if the local authority does receive a request from a community interest group to be treated as a potential bidder
The owner does not have to sell the asset to the community group.
There is also a 'protected period' (18 months from the time that the owner notified the local authority of their intention to dispose of the asset) - during this time there can be no further moratoriums
Who can bid?
Only community interest groups that meet the government's criteria can bid to buy a community asset. Not all groups that are eligible to nominate are also eligible to bid.
The following organisations are eligible to bid:
- Parish councils
- Charities
- Community interest companies
Or, one of the following, provided it does not distribute any surplus it makes to its members, and any surplus it makes are wholly, or partly, applied for the benefit of the administrative area of North Warwickshire Borough Council, or one of our neighbouring authorities:
- A company limited by guarantee.
- An industrial and provident society.
In addition, a bid body must have a local connection, which means that its activities are wholly or partly concerned with the administrative area of North Warwickshire Borough Council, or one of our neighbouring authorities.
The Process
The Regulations and explanatory note published by government provide detailed information on:
- The bodies that can make nominations (such as local parish councils)
- Land that is exempt from being listed (such as premises which are primarily residential)
- The steps that North Warwickshire Borough Council has to take when considering whether to list land as an asset of community value and upon listing that land (including notifying relevant parties)
- Arrangements for owners to make appeals on decisions to list or award compensation on any losses incurred as a result of being listed (including internal reviews and external tribunals)
- Exemptions to the 6 month moratorium being applied when land is put up for sale or long term lease.
A decision will be made within 8 weeks of the receipt of nomination (or when the application is complete) on whether to list the asset. The asset will then be placed on a list of successful/unsuccessful nominations on the website (below) and a list of current nominations will also be available
Who to contact in the Council
- Complete our online community asset nomination form to list an asset as being of community value or
- This should be emailed to communityassets@northwarks.gov.uk or posted to Forward Planning, North Warwickshire Borough Council, Council House, South Street, Atherstone, Warks, CV9 1DE.
Support available and other considerations
Support on the use of this right is available from the Locality - My Community Rights website Where the owner of a listed asset, such as a pub, applies for 'change of use' then the fact the asset is listed as an asset of community value may be a material consideration in making a decision on whether to grant change of use..