Draft Assets of Community Value Regulations laid before Parliament

The assets of community value reforms aim to protect the loss of local assets by giving community groups first refusal to buy an asset when it is sold. There is concern that the Regulations could be used by communities to block development.

The Assets of Community Value scheme was introduced in the Localism Act last year and is part of the Government's community empowerment agenda.

The draft Regulations specify details necessary to bring into force the Assets of Community Value provisions contained in the Localism Act.

Under the scheme, local authorities are required to maintain a list of buildings and other land in its area which are considered to be of community value. If an asset of value on the list is then put up for sale, local community groups would have the opportunity to delay the sale to enable them to prepare a bid to buy it.

Local community groups can nominate "community assets" for inclusion on the councils list. If an asset is in an authority's area and has community value, the nomination must be accepted.

However, there is concern that the regulations could be used to block development. "As presently formulated, the wide scope of the provisions could make them a useful weapon in the armoury of those wishing to block or delay developments," a briefing by barristers Landmark Chambers said.

A community nomination can be made by a local parish council or a "voluntary or community body...with a local connection", under the regulations.

When an asset is put up for sale, a moratorium of six weeks comes into effect immediately. This would then also allow a community interest group to trigger the full moratorium of six months.

"The focus of the Assets Scheme is therefore to give the local community early warning of sales and to enable eligible local groups to delay sales by 6 months to provide time for them to put together a competitive bid to buy the asset," the Government said.

"The scheme does not require the owner to sell to a community group, but improves the opportunity for this outcome."

Following a consultation on the proposed scheme, there was a "significant" level of support to allow compensation for the loss of value of an asset due to listing, especially any delay in sale due to the interim or full moratorium, the Government said.

Debate in Parliament also gave rise to Government assurances that the regulations would include private landowners being able to claim for loss as well as expenses.

The amount of compensation that would be available would vary and would be determined, and paid by, the local authority.