Community Right to Bid (Assets of Community Value)

What is the Community Right to Bid?

The Community Right to Bid was introduced by the Localism Act 2011 and came into force on 21 September 2012.

Every neighbourhood has a building or land which is valued by the community, such as a pub or a village shop, a library or a playground, a community centre or a swimming pool.  Previously the community was largely excluded from any part in the closure or sale of these amenities.

The Community Right to Bid now gives those voluntary and community groups with a local connection the opportunity to nominate such land and buildings to be included on the list of Assets of Community Value. If the nomination is accepted, the owner must first tell the Council if they want to sell the listed Asset of Community Value. The council will inform the nominating community group or voluntary organization of the intended sale.

Legislation has been made (but not yet in force) to introduce a “Community Right to Buy” which will replace the Community Right to Bid.

What does it mean?

Following a notification of intended sale, there is a period of six weeks (the “interim moratorium period”) during which the Asset cannot be sold. During this interim period, eligible community groups which are interested in bidding for the listed Asset of Community Value may then notify the Council of their interest. 

If an eligible community group notifies the Council of their interest during this six week period, the moratorium period is then extended to six months, and the owner cannot sell until the extended moratorium period has extended. This is to give the community group an extended period to raise funds to submit an offer to the owner to buy the Asset.

Please note that the extended moratorium period of six months WILL ONLY APPLY if the expression of interest is submitted by an eligible community group. Only certain forms of community group are eligible community groups for this purpose.

To be eligible as a Community interest Group, a potential bidder must be one of the following:-

  • a charity;
  • a company limited by guarantee which does not distribute any surplus it makes to its
  • members;
  • a co-operative or community benefit society which does not distribute any surplus it makes to its members;
  • a community interest company; or
  • the parish council of the parish in which the site is situated.

Other than the parish council, a body listed above must also have a “local connection” with Test Valley Borough. This means it must operate wholly or mainly within the Borough, or within the area of a neighbouring local authority (see Regulation 4 of the Asset of Community Value Regulations 2012).

It’s a right to bid not to buy. The owner can reject a bid from an eligible community group and sell to whomever he chooses at any price he chooses but only upon the expiry of the moratorium period. Only then can the owner can do anything to the land or the building that he could have lawfully done before the land or building was listed as an Asset of Community Value.

The listing of the land or building will be for up to five years. The Council may remove the Asset of Community Value from the list if it forms the view that the asset is no longer of community value.

See the Nomination Form and Guidance in the documents section for more information on:
• The Process
• What is an Asset of Community Value?
• What Information does a nomination need to contain?
• What are the consequences of listing land or buildings as Assets of Community Value?

For all other queries about Community Right to Bid please contact us.