Community Assets

The Localism Act includes provisions to give communities the right to identify a building or other land that they believe to be of importance to their community's social well-being. The Government introduced such proposals in response to the growing concerns at the loss of local amenities and buildings of importance to local communities - a village or housing estate shop, a pub or community centre, a village hall.

To inform debate on the Bill in the House of Lords, the Government produced a policy statement in September 2011 which gave details of the proposals and addressed some of the issues raised during consideration of the provisions at Lords Committee stage of the Localism Bill. The statement explains the Government's intentions, both for amending the Bill, and further details that are likely to be in regulations. The Government intends to lay regulations as soon as possible after the Bill achieves Royal Assent, based on what is set out in the policy statement. The policy statement can be downloaded at http://www.communities.gov.uk/publications/localgovernment/assetscommunityvaluestatement?view=Standard

Key features of the provisions

Definition of a community asset

A building or other land should be considered an asset of community value if 'its actual current use furthers the social wellbeing and interests of the local community, or a use in the recent past has done so'. 'Social interests' will be defined to include cultural, recreational and sporting interests. The Government will leave it to the local authority to decide what is 'recent past'. Residential premises and transport infrastructure will be exempted from the provisions (see policy statement for precise details).

List of assets and the right to make nominations

The provisions require a local authority to maintain a list of assets of community value and to notify the owner(s), occupier, and nominator(s) and any other interested parties to be specified in regulations. It also requires a local authority to maintain a list of unsuccessful community nominations, the aim of which is to provide transparency, and also to deter repeat nominations, where the circumstances have not changed. The owner will have a right to an internal review by the council, and a right of appeal to an independent tribunal against the result of the internal review. Nothing further will happen until the owner decides to dispose of the asset.

Voluntary and community organizations with a local connection and parish councils in will have the right to make nominations of assets to be included on the list. It is proposed that a "local voluntary and community body" will be defined 'as a body, other than a public or local authority, which may be incorporated or unincorporated, must not be run primarily for profit, and must have a primary purpose concerned with the local authority's area, or the neighbourhood in which the asset is situated where this is in more than one authority's area'.

The right to bid

If an asset comes up for sale, then communities will be given a chance to make a bid to buy it on the open market. If the nominated asset meets the definition of an asset of community value, the local authority will list it. The owner will only be able to dispose of the asset after a specified window has expired. The first part of this window is an interim period, which will allow community interest groups to express a written intention to bid. If none do so in this period, the owner is free to sell their asset. If a community interest group does express an intention to bid during this interim period, then the full window will operate. After that, the owner is again free to sell to whomever they choose, and no further window can be triggered for a protected period.

Compensation scheme for owners

There will be a compensation scheme enabling private property owners to claim for costs or loss incurred as a direct result of complying with the procedures required by the provisions. Claims will be made to the local authority. There will also be a right of internal review of a compensation decision and of appeal to an independent tribunal on a point of law.

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