Community Right to Bid FAQs

How does the Community Right to Bid work?

Local voluntary and community bodies can nominate an asset (a building or land) to be included on the List of Assets of Community Value, which we maintain. If the nominated asset meets the required criteria, it will be added to the list.

Then, when the owner of a listed asset wishes to dispose of the property, they must inform us. Some types of disposals are exempt from the scheme and the owner will be able to proceed with their disposal as planned. However, if the disposal is not exempt, we'll notify the community that the owner proposes to sell the property, and a six-week window of opportunity (called the 'interim moratorium period') will be triggered in which the owner can't sell the asset.

If, during these six weeks, an eligible local community interest group informs us that they would like to be treated as a potential bidder for the asset, a longer moratorium period (up to six months) will be triggered. During this time, the owner can't sell the asset, and eligible community organisations can use this period to prepare their bids to purchase the property.

However, the owner of the listed asset doesn't have to accept the community group’s offer, and when the moratorium period ends, the owner can sell the property to anyone of their choosing.

The following Q&A's will provide greater detail on each step in the process.

What is the point of the Community Right to Bid?

The government acknowledges that 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 wouldn't be the same without them, and if they're closed or sold into private use, it can be a real loss to the community. Over the past decade communities have been losing local amenities and buildings of great importance to them – the village or housing estate shop or pub or community centre or village hall. The government cites that on average nearly 300 pubs and 400 village shops have closed each year.

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 that 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 Community Right to Bid provision in the Localism Act 2011 was introduced particularly for this reason; to give a fair chance to local communities to prepare a bid to keep “assets of community value” in public use and part of local life, the 2012 legislation makes provision for the local community to have the opportunity to bid for a listed asset should the owners decide to offer it for sale during the listing period. The owner does not have to accept any bid made by the community, only to consider it. A successful listing does not provide any other community benefits.

What kinds of assets can (and can't) be nominated for inclusion on the ACV list?

A range of both public and private assets can be nominated, whether the asset is owned by a private company, an individual, Shropshire Council or another public body. Assets can be buildings or land. Assets to nominate might include an isolated village shop, a community centre, a children's centre, an allotment, a library, a swimming pool, a museum, or another asset that the community believes to have community value, as long as each asset meets all of the criteria for an 'asset of community value' as set out in the Localism Act 2011.

However, as legislated in the Localism Act 2011, there are three types of asset that can't be nominated for inclusion on the List of Assets of Community Value.  You can find the exact details of these exclusions in Schedule 3 of the Assets of Community Value (England) Regulations 2012, but as a summary, these are:

  • Residential properties – except where an asset which could otherwise be listed contains integral residential quarters, such as an accommodation as part of a pub
  • Land licensed for use as a residential caravan site (and some types of residential caravan site which don't need a licence)
  • Operational land of statutory undertakers as defined in s263 of the Town and Country Planning Act 1990, for example, railways, roads, canals, airports, docks, etc.

What will a successful listing as an ACV achieve?

If listed as an ACV the asset will remain on the list for up to five years. During this time the owner must inform us if they intend to enter into a relevant disposal of the property. Take a look at the 'What exactly is a relevant disposal of my asset?' FAQ for more information. 

If we receive a notice, we'll publish this fact, and valid community bodies can register an intention to bid. Take a look at the 'Who can trigger the full moratorium?' FAQ for more information on valid community bodies. 

What will a successful listing as an ACV not achieve?

The listing will not:

  • Restrict who the owner can sell their property to or at what price
  • Give a right of first refusal, the right to purchase or preferential treatment to a local community interest group
  • Automatically give a community interest group a chance to bid for the property – there are many disposals that don't require notification to be given. Take a look at the 'What exactly is a relevant disposal of my asset?' FAQ for more information on disposals, and the 'Which types of disposals are exempt from the moratorium periods' FAQ for more information on exemptions
  • Stop the asset from closing down/ceasing business if the owner decides that the asset is no longer viable
  • Stop the owner from restricting access to the asset
  • Force the sale of an asset
  • Oblige the owner to enter into any negotiations with a community interest group about a bid
  • Prevent any change of use or impede development. Being listed as an ACV is only a material consideration when it comes to planning matters

Who can nominate an asset as an asset of community value?

Parish or town councils or voluntary or community organisations with a local connection can nominate land or buildings that are important to them and are in their local area. The list, as prescribed in the legislation, is as follows:

  1. a body designated as a neighbourhood forum pursuant to section 61F of the Town and Country Planning Act 1990;
  2. a parish council;
  3. an unincorporated body:*
    1. whose members include at least 21 individuals, and
    2. which does not distribute any surplus it makes to its members;
  4. a charity;
  5. a company limited by guarantee which does not distribute any surplus it makes to its members;
  6. an industrial and provident society which does not distribute any surplus it makes to its members; or
  7. a community interest company

*If you're an unincorporated body you'll need to demonstrate that you have a common purpose and that the whole group authorises the nomination. The members of the group also have to have a local connection and the guidance to local authorities to verify this connection is to check the members details against the electoral register. Therefore a minimum of 21 members listed must be on the electoral register. To assist unincorporated groups a template has been prepared which they can use to ensure they satisfy these requirements. The template can be found here. 

How do you decide whether or not to list an asset?

When we receive a nomination form from an eligible community or voluntary body, it will evaluate the nomination according to the following criteria laid down in the legislation:

  1. Check that the body submitting the nomination is a valid body as prescribed in the legislation.
  2. Check the land registry details to confirm the owner of the property.
  3. Undertake consultation with the owner and occupier of the property, the local Shropshire Council member and town or parish council (unless they're the nominating body). The owners will be provided with the name of the nominating body and we will share with them the answers provided in Section 3 of the nomination form, together with any supporting information submitted as part of the nomination to enable them to respond to the applicants submission.
  4. Assess whether the nominated asset meets the requirements of Section 88 of the Localism Act.

What are the criteria for deciding whether or not to list an asset?

Nominated land or property has to satisfy Section 88 of the Localism Act. There are two sub sections which provide the basis of assessment depending on whether the use of the land or property is current or has occurred in the recent past.

Section 88 (1):
Does the ‘actual current use of the land, that is not an ancillary use, further the social wellbeing or social interest of the local community’ and is it ‘realistic to think that can continue to be a non-ancillary use, which will further (whether or not in the same way) the social well-being or interests of the local community’?

Section 88 (2):
Did the ‘actual use of the building or other land that was not an ancillary use defined above occur in the recent past’ and is it ‘realistic to think that there is a time in the next five years when there could be non-ancillary use of the building or other land that would further (whether or not in the same way as before) the social wellbeing or interests of the local community’?

We consider the evidence and representations presented by the nominating body, the owner, the relevant parish council and Shropshire Council Member regarding recent, activities that did/ do /continue to occur there that further the social wellbeing of the local community.

If you are considering submitting a nomination the more evidence that you can submit to support the assessment against the tests in Section 88 (1) & (2) the greater your chances are of a successful listing.  Please also consider carefully, and explain fully, the reasons for submitting the nomination as these are also taken into account.

Whilst we can consider representations made by the owner, the relevant town or parish council and Shropshire Council member, ultimately the decision is based on whether the asset passes the two key tests above.

I own a nominated property, do I get a say in deciding whether or not my asset is added to the list?

When we receive a nomination we'll notify you (in writing) that a nomination has been made for the asset that you own. You'll be given the opportunity to make written representations prior to any decision being taken. We have to make a decision within eight weeks of receipt so the period of time to respond is quite short. If we decide to include the asset on the List of Assets of Community Value and you don't agree with this, you also have the right to request an internal review of our decision.  There are also provisions for a further appeal to the General Regulatory Chamber of the First Tier Tribunal, which is wholly independent of us, should you remain unsatisfied with the results of the internal review.

Who is considered the owner for the purposes of the scheme?

The definition of 'owner' for the Community Right to Bid comes from section 107 of the Localism Act 2011:

  1. In this chapter 'owner', in relation to land, is to be read as follows:
  2. The owner of any land is the person in whom the freehold estate in the land is vested, but not if there is a qualifying leasehold estate in the land.
  3. If there is just one qualifying leasehold estate in any land, the owner of the land is the person in whom that estate is vested.
  4. If there are two or more qualifying leasehold estates in the same land, the owner of the land is the person in whom is vested the qualifying leasehold estate that is more or most distant (in terms of the number of intervening leasehold estates) from the freehold estate.
  5. In this section 'qualifying leasehold estate', in relation to any land, means an estate by virtue of a lease of the land for a term which, when granted, had at least 25 years to run.
  6. The appropriate authority may by order amend this section:
    1. For the purpose of changing the definition of 'owner' for the time being given by this section;
    2. for the purpose of defining 'owner' for the purposes of this chapter in a case where, for the time being, this section does not define that expression.

Who can appeal against the listing of an asset?

Only the owner has a right to request a review of a decision to register an asset. There are no rights for other persons or bodies to have the decision to list or not to list reviewed.

I own a listed asset, how can I appeal against my asset being included on the list?

If a nomination is successful, we'll notify the owner of the asset, the community group that made the nomination, and the occupier and other legal interests (if different from the owner) that the asset has been added to the List of Assets of Community Value.

As the owner, if you do not agree with this decision, you may request an internal review within eight weeks of being notified that the asset has been added to the list by writing to our Asset Management team at communityright@shropshire.gov.uk 

We'll then complete an internal review within eight weeks of receiving your request. We'll inform you of the results of the review.

What is the procedure for a listing review?

A review should take place within eight weeks of the date that we, the council, receive the written request for the review, or such longer period as is agreed with the owner in writing.

The review will take place in writing, unless the owner specifically requests an oral hearing.  It is our view that, generally for these reviews, giving evidence in person at a hearing doesn't give the parties concerned the best opportunity to present their case. An oral hearing isn't an adversarial process. 

The reviewer will be provided with a copy of the original nomination, consultations, decision and site plan. The owner may submit additional representations in writing. Any representation made just orally will need to be provided in writing following the hearing, and the reviewer may take additional time to arrive at their decision if this differs substantially from any written representations made prior to the hearing.

The reviewer is, pursuant to section 92 of the act, obliged to review the council’s decision to include the land in our list of assets of community value. The listing review will not be concerned with any other matters. The reviewer will consider if the nomination valid, if it's in the council’s area of authority, and if it meets the statutory definition. Take a look at the 'What are the criteria for deciding whether or not to list an asset' FAQ for more information on the statutory definition.

If the result of the review is that the asset should remain on the list, but as the owner you do not agree with this result, you may appeal this decision by applying to the General Regulatory Chamber of the First-Tier Tribunal.  You are advised to seek legal advice in this regard.

How long will my asset remain on the list?

When an asset is added to the List of Assets of Community Value, it will remain on the list for five years. In some cases it may be removed earlier than five years, for example:

  • If an internal review or independent appeal judges that the asset has been wrongly listed
  • If a relevant disposal has taken place
  • If it becomes no longer of community value 

Once the asset has been removed from the list, a community group can nominate it again to be included on the list.

What happens if you add my property to the list?

If a group’s nomination is accepted, and your asset is added to the list, we'll update the website to include your asset on the list, and notify yourself and the nominator in writing. However, nothing further will occur until you decide to enter into a relevant disposal of your listed asset.

What exactly is a 'relevant disposal' of my asset?

A relevant disposal is defined in section 96 of the Localism Act 2011 and is:

  • A disposal of the freehold estate in land is a relevant disposal of the land if it is a disposal with vacant possession
  • A grant or assignment of a qualifying leasehold estate in land is a relevant disposal of the land if it is a grant or assignment with vacant possession
  • If a relevant disposal within subsection (2) or (3) is made in pursuance of a binding agreement to make it, the disposal is entered into when the agreement becomes binding
  • Subject to subsection (4), a relevant disposal within subsection (2) or (3) is entered into when it takes place
  • In this section 'qualifying leasehold estate', in relation to any land, means an estate by virtue of a lease of the land for a term which, when granted, had at least 25 years to run

Could a small community group prevent me selling my property to whomever I want?

No community group can prevent you from selling your asset to the buyer of your choice, at any price agreed with the buyer. However, in some circumstances you may have to wait up to six months before you can complete the transaction.  

The Community Right to Bid allows eligible community groups to nominate your property to be included on the List of Assets of Community Value. If their nomination is successful (if it meets the criteria for 'asset of community value' that is set out in the Localism Act 2011) we'll add your asset to the list. If your asset is on the list and you'd like to dispose of it, you must notify us in writing. We'll then notify the community group that nominated the asset that you intend to sell the asset and advertise this locally and on our website, upon which time a six-week moratorium period starts to give a community group the chance to register their interest in bidding with us. If a group tells us they would like to bid then a six-month moratorium is triggered to allow them time to prepare their bid. During this moratorium you can't dispose of the asset. However, at the end of the moratorium periods you're completely free to dispose of your asset to whomever you want, at any price agreed between you and the buyer. You don't have to accept the community group’s bid at any point. Community groups don't have a right of first refusal.

What should I do when I wish to dispose of my property that is on the ACV list?

If the type of disposal you wish to enter into isn't covered by one of the exemptions (see next question), you must notify us that you intend to dispose of your asset. This is now enforceable under the Localism Act 2011 and any non-compliance will lead to your disposal becoming void. To inform us of your intention to dispose of the asset, please email our head of property and development at communityright@shropshire.gov.uk

When you notify us of your intention to dispose of the asset, a six-week interim moratorium period will be triggered in which you cannot sell the asset. During this time, eligible community interest groups can request to be treated as a potential bidder for that asset. If they don't make this request, you'll be free to sell your property when the six weeks have passed.

However, if a request is made, a longer moratorium period will be triggered in which you can't sell the asset, and in which community groups can prepare their bids to purchase the property. This period lasts for six months from the date you notified us that you intend to sell your property.

When this period ends you'll be free to sell to anyone of your choosing – you don't have to accept the community group’s bid. You'll then be covered by a 12-month 'protected period' in which you can sell your asset without being subject to any further moratorium periods.

Please note that if you neglect to notify us of your intention to dispose of the asset, or if you claim that your disposal is exempt even though it's not, enforcement and non-compliance policies are in place that will lead your disposal to become void and ineffective.

Owners considering a disposal of an asset of community value are recommended to seek legal advice with regard to this aspect of the legislation.

Who can trigger the full moratorium?
  1. A parish council, if any of the land is in its area; or
  2. A community interest group in relation to any land if the body: (i) is within one or more of sub-paragraphs (c) to (f) of regulation 5(1)(below); and (ii) has a local connection with the land.
  3. A charity
  4. A company limited by guarantee that is non profit distributing
  5. An industrial and provident society that is non-profit distributing (these groups will be renamed as community benefit societies by the 16 co-operative and community benefit societies and Credit Unions Act 2010 when the relevant provisions come into force)
  6. a community interest company*   

(*) A community interest company is one which satisfies the requirements of part 2 of the Companies (Audit, Investigations and Community Enterprise Act. See in particular sections 26, 35 and 36A. There have been amendments to section 26 and a substitution of section 36A which are not significant to these regulations.

Which types of disposals are exempt from the moratorium periods?

Usually, when the owner of a listed property wishes to sell the property, they must notify us of their intention, and as described above, we then trigger a six-week moratorium period and provide the community with this information. However, in some cases (24 specific situations listed in the legislation), this process does not apply. 

In these cases the owner may proceed with their disposal without telling us, the community is not notified of the owner’s intention to sell, and no moratorium periods are triggered.

Owners considering a disposal of an asset of community value are recommended to seek legal advice with regard to this aspect of the legislation

For full details of these exemptions, please see Section 95(5) of the Localism Act and Schedule 3 of the regulations. If you are sure that the type of disposal you plan to enter into is covered by one of these exemptions, you do not have to inform us of your intention to dispose, and no moratorium periods will be triggered. However, it is very important that you understand the detailed legislation around exemptions, and are confident that the disposal is exempt before you continue. You'll also have to provide a certificate to Land Registry, signed by a conveyancer confirming the transfer did not contravene the moratorium provisions of the act. 

If it is not exempt, and you proceed with the disposal, your disposal will be considered void and ineffective due to the enforcement and compliance provisions in the Localism Act 2011 (see next question).

Owners considering a disposal of an asset of community value are recommended to seek legal advice with regard to this aspect of the legislation.

What happens if I sell my property during the moratorium period?

Because the asset has been added to the List of Assets of Community Value a restriction will be placed on its entry in the Land Register, in the form of the following wording:

“No transfer or lease is to be registered without a certificate signed by a conveyancer that the transfer or lease did not contravene section 95(1) of the Localism Act 2011”.

This restriction will ensure that any future disposal of the asset will take place in accordance with the rules of the scheme. This means that any sale of your property that contravenes the relevant Localism Act 2011 provisions for the moratorium periods would be considered ineffective.

Owners considering a disposal of an asset of community value are recommended to seek legal advice with regard to this aspect of the legislation.

What happens if I sell or buy land or property that is on the ACV list during the protected period?

During the protected period an owner is free to sell the asset without restriction from the legislation. Your solicitor or conveyancer should provide a signed certificate to the Land Registry to confirm the transfer doesn't contravene section 95(1) of the Localism Act 2011.

It's recommended that anyone considering a disposal or purchase of an asset of community value seeks legal advice with regard to this aspect of the legislation.

How often can these moratorium periods be triggered?

Moratorium periods cannot be triggered in continuation, because of the protected period. This period lasts for a total of 18 months from the date you notify us that you wish to enter into a relevant disposal of the asset. If you do not sell your asset at the end of the interim or full moratorium periods there will be the remainder of the protected period (eg 12 months) in which you are permitted to sell without triggering another delay.  So, if you do not manage to sell the asset after complying with the rules of the scheme, you would be free over the next 12 months to dispose of your asset without triggering another cycle of interim and moratorium periods.

What if the value of my property goes down during the six months that I must wait before selling my asset?

The government realises that, in order to achieve a significant community benefit, the Community Right to Bid provisions have an impact on the rights of private property owners. Because of this there is a compensation scheme in place that enables private property owners to claim for costs or loss incurred as a direct result of complying with the Community Right to Bid procedures.

What if I don’t want to sell my asset to a community group that makes an offer, even if they make the highest bid?

You do not have to accept the community group’s offer, no matter how high their bid. The Community Right to Bid provisions do not restrict in any way who the owner of a listed asset can sell his or her property to or at what price, and they do not confer a right of first refusal to community interest groups.

What do I need to do if I buy land or property that is on the ACV list?

Regulation 19(2)  of the Assets of Community Value Regulations 2012 states that you must, as soon as practical after becoming the owner, give the responsible authority full details of the name and address of the new owner.  

If the transfer was a 'relevant disposal' (see FAQ above) and you demonstrate this to the authority, it will remove the asset from the ACV list. Please note that it can be renominated by the community if they still consider it to be an asset of community value, and the process would then recommence from the start). 

It's recommended that anyone considering purchasing an asset of community value seeks legal advice with regard to this aspect of the legislation.

Is there any funding available to assist in purchasing an asset?

The Mycommunity website has useful tips on how to fund a community project.

The £150m Community Ownership Fund helps to ensure that communities can support and continue benefiting from the local facilities, community assets and amenities most important to them. Until 2024/25 community groups will be able to bid for matched-funding to help them buy or take over local community assets at risk of being lost, to run as community-owned businesses. Find out more from the Gov.UK website.  If you are thinking of selling shares you could also take a look at the Community Shares Booster Fund.

Where can I read more about the Community Right to Bid and the list of assets of community value?

You can view the full text of the Community Right to Bid chapter in the Localism Act 2011 (Part 5 Chapter 3) and the Assets of Community Value (England) Regulations 2012, can be viewed here: