Section 88 ACV Consultants
Assets of Community Value - Help & Advice for Owners
Has your property been nominated as and asset of Community Value under the Localism Act 2011, Right To Bid Legislation ?
Ramifications of an Asset of Community Value Listing
Initially designed as a means to give local community groups a fairer chance to bid for properties when they come up for sale in order to retain their community benefit, ACVs show signs of evolving into something more troubling for owners. Initially the main concern for those affected by the listing of a property as an ACV was the delay that it could cause to a sale. Otherwise, the constraints were minimal as the legislation introduced no requirement to sell to community groups, no restrictions on sale price and not even a right of first refusal. However, the restrictions have since grown teeth and some fear that ACVs could become a similar impediment to development as the registration of land as a town or village green.
material consideration in planning
If a building or land is included on a local authority’s ACV list, it remains on the list for five years. When an LPA then considers planning applications in its area it is “open to the LPA to decide whether listing an asset of community value is a material consideration”. The fact an asset is listed therefore may or may not be a significant factor in the balance when the LPA considers applications.
upto 6 month delay in selling (moratorium)
The owner of an asset of community value must inform the local authority if they wish to sell the asset. If a qualifying community group wants to buy the asset, they can trigger a moratorium for six months, to give them a chance to raise the money to purchase the asset. The owner does not have to sell to a community group. The asset of community value listing only improves the chances of community groups being able to purchase by providing more time to raise funds. It does not require the owner to sell at a discount.
Contravention of the restrictions
Contravention of the restrictions can have serious consequences, as the owners of the Carlton Tavern in Maida Vale found out. They demolished the property without following the requirements and have recently been ordered to rebuild the pub to its previous condition.
Remains in place for 5 years
The listing of a property as an ‘Asset of Community Value’ lasts for five years after which it is automatically delisted and the restrictions imposed by the covenant are removed. Communities can however apply for the listing to be renewed.
How Can We Help
Assets of Community Value (Community Right to Bid) is one of the most misunderstood pieces of legislation to come out of the localism Act 2011.
We are here to help just ask
Asset Of Community Value (Right To Bid) Under the Localism Act 2011
Why Choose Us
We aim to provide an efficient, professional service, utilising our skills, experience and knowledge of the Right To Bid Legislation to your best advantage. We aim to provide honest advice about the merits of your case, and the best means of achieving success.
Every town, village or neighbourhood is home to buildings or amenities that play a vital role in local life. They might include community centres, libraries, swimming pools, village shops, markets or pubs. Local life would not be the same without them, and if they are closed or sold into private use, it can be a real loss to the community.
In many places across the country, when local amenities have been threatened with sale or closure, community groups have taken them over. In some cases, however, community groups who have attempted to take assets over have faced significant challenges. They often need more time to organise a bid and raise money than the private enterprises bidding against them.
The Localism Act requires local authorities to maintain a list of assets of community value which have been nominated by the local community. When listed assets come up for sale or change of ownership, the Act then gives community groups the time to develop a bid and raise the money to bid to buy the asset when it comes on the open market. This will help local communities keep much-loved sites in public use and part of local life.
We can assist you with your Asset of Community Value concerns, from avoidance advice to challenging a successful nomination. We promise to give you honest advice on the merits of your case, and the best means of achieving success. We will use our extensive knowledge and research library to put together specialist reports and information.
In late 2019 our team started work to create a detailed database of every property nominated as an Asset of Community Value in England, which would enable a detailed study of how ACV system interacts with the community and property owners. Our long term goal is to create a resource which will define what an ACV actually is to help owners and local authorities know what properties actually meet the criteria set out in section 88.
There has been some unusual properties nominated successfully as an ACV such as a waste transfer site in Chelmondiston and a signal box in Acle.
Despite the ACV system costing an estimated £43.3 million per year to fund their is no central government database and the information available on local authorities websites varies immensely. We estimate that this study will take in excess of 7,000 hours to research and compile all the data.
Although this database will not be publicly available as its core purpose is to help our clients with their ACV issues, we will be keeping these statistics updated and produce various white papers.