Assets of Community Value
Communities can ask their Local Authority to list certain assets as being of value to the community. If an asset is listed as such 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.
It applies to assets which may be important to a community such as a:
- village shop
- community centre
- children’s centre
- recreation ground
- nurseries and children’s centres
- health centres, surgeries and hospitals
- sport, recreation and culture
- parks and open green spaces
- sports grounds
- theatres and cinemas
- swimming pools and lidos
- community services
- community centres
- youth centres
There may well be few cases in which the community seeks to impose a listing on such an asset. However this legislation may well be a deterrent to any commercial enterprise setting up a local facility which may become so listed. After all, once listed the asset would not be immediately saleable. Banks and lenders may accordingly be wary of lending on the security of assets which are or may become listed. “White knights” may also be reluctant to step in and save an asset if it is feared that their ultimate disposal of it may later be inhibited by its listing.
However the First-tier Tribunal (FTT) has held it possible to claim compensation under the legislation for the loss or expense arising from the listing of an asset (St John Ambulance v Teignbridge District Council (2018) (CR/2018/0003)). Loss of value had to be assessed as at the listing date, and had to be conducted on the assumption that the listing regime existed but had not been applied to the relevant asset.
The right was introduced by Chapter 3 of the Localism Act 2011
and procedures are set out in The Assets of Community Value (England) Regulations 2012
Additional resources – Links
Download the House of Commons briefing of December 2015 from the link at http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06366#fullreport