Resisting an Asset of Community Value Nomination
The Localism Act 2011 and Assets of Community Value (England) Regulations 2012 give community groups a 'right to bid' for property that is of value to the local community - known as Assets of Community Value (ACVs).
Once a Local Authority receives a nomination they must decide whether to list the property within eight weeks and they must serve notice on the owner. The owner has no formal right to object, but local authorities pay attention to objections received. A property remains on the ACV list for five years.
Listing means that the owner cannot dispose of the property without giving notice to the Local Authority. The nominating community group then has six weeks in which to bid for the property. If it does so the sale cannot take place for six months. At the end of the six month period, the owner may sell but is not obliged to sell to the community bidder. If an owner has no plans to sell, listing may cause no problem, but if sale is planned the delay which can be caused by listing may become an issue.
It should be noted that even if there are no plans to sell, Local Planning Authorities may see an ACV listing as being a material consideration in any planning application for redevelopment. For example, an ACV nomination for a pub affects normal permitted development rights.
Only certain organisations can nominate, so investigating the nominator to check whether it is technically able to nominate can be worthwhile.
The ACV listing process has been successfully used by community groups to buy property, but often it is used by protestors as a barrier to re-development. Churches and pubs are particularly affected.
If an owner wishes to avoid the inconvenience of a property being listed they should resist the ACV nomination as soon as they receive notice. Once a listing is made, there are only eight weeks for an owner to apply for review
In a recent case, a listing decision was overturned. The property was a church but the main points arising out of the case apply across the board:
- the property must be used for "furthering the social wellbeing or social interests of the local community"
- ancillary use is ignored
- there must be a realistic prospect of the property being used within the next five years for a non-ancillary use that would further the social wellbeing or social interests of the local community. This must be more than just a speculative prospect
- planning arguments are not relevant, the community value is key
If a property is listed and an objection or review is unsuccessful, the owner can claim compensation from the Local Authority for loss and expense incurred, including for the delay in selling the property. Such potential loss should be raised in any objection or review as it may deter the Local Authority from listing the property.