The community right to bid and assets of community value—what is a relevant disposal and how do the moratorium periods operate?
The community right to bid and assets of community value—what is a relevant disposal and how do the moratorium periods operate?

The following Planning guidance note provides comprehensive and up to date legal information covering:

  • The community right to bid and assets of community value—what is a relevant disposal and how do the moratorium periods operate?
  • What is the community right to bid?
  • Considerations in exercising the community right to bid
  • Purpose of the moratorium periods
  • Relevant disposal—moratorium on disposing of asset of community value
  • Publicising receipt of Disposal Notice, amendments to the list of assets of community value and Land Registry requirements

What is the community right to bid?

The community right to bid was introduced by sections 87–108 of the Localism Act 2011 (LA 2011) to enable local community groups to nominate buildings or land for listing by the local authority as assets of community value. When buildings or land listed as assets of community value come up for sale or change ownership, a moratorium on the sale of up to six months can be invoked, providing local community groups with an opportunity to bid to buy the asset on the open market.

Importantly, there is no right for the community to buy the asset; nor is there a right of first refusal on a sale. Instead, the community is simply entitled to bid for the asset (and is given time, during the moratorium period, to prepare a proposal for the asset). The owner of the asset can choose freely who to sell the asset to and for how much.

Although the provisions in LA 2011 relating to the community right to bid apply in principle to England and Wales, the Welsh government is yet to introduce the required commencement order to bring into force the relevant provisions of LA 2011 in Wales. The community right to bid therefore currently extends to England only.

Considerations in exercising the community right