Community Right to Bid
What’s coming up
1) Background – political and community
2) Detail – what is it, why use it, how to use it
3) Learning – what we know so far, issues and
4) Help and support – inspiration, networks,
How much do you know about the Right to
Some of the basics
Localism and Decentralisation
Doing everything at the lowest possible level and
only involving central government if absolutely
Giving away power to individuals, professionals,
communities and local institutions
Driver 1. The political vision: putting more
power and opportunity into peoples’ hands
“When you give people and communities more power over their lives,
more power to come together and work together to make life better –
great things happen.”
David Cameron, Prime Minister
People feel rooted in their neighbourhood. They are proud of it. It’s where
they have the most immediate ties, the closest loyalties. It’s where they
are most ready to get involved.”
Eric Pickles, Secretary of State for Communities and Local Government
Key government policy
• 2010 Coalition Agreement: “Support the creation and
expansion of mutuals, co-operatives, charities and
social enterprises, and enable these groups to have
much greater involvement in the running of public
• July 2011 Open Public Services White Paper: “A
decisive end to the old-fashioned, top-down, takewhat-you-are-given model of public services.”
• Localism Act (2011)
• March 2012 & May 2013 Open Public Services updates.
From ‘powers’ to ‘rights’:
The Localism Act (2011)
• New freedoms and flexibilities for local
• Reform to make the planning system more
democratic and more effective.
• Reform to ensure that decisions about
housing are taken locally.
• New rights and powers for communities
Plain English guide:
New rights and powers for
communities and individuals
• Community Right to Build - Gives communities the power
to build new shops, housing or community facilities without
going through the normal planning process.
• Community Right to Challenge - Gives local groups the
opportunity to express their interest in taking over a local
service where they think they can do it differently and
• Neighbourhood Planning - Gives people the chance to
decide how their local area should develop and what should
Community Right to Bid
(Assets of Community Value)
• Came info force in September 2012.
• Voluntary and community organisations (and parish
councils) can nominate land and buildings to be included
in a local ‘list of assets of community value’.
• The local authority is required to maintain the list.
• If the owner of a listed asset decides to sell, a
moratorium period (a 6 month ‘pause’ in the sale
process) will be triggered during which time the asset
cannot be sold.
• This window affords communities precious time to raise
the necessary funds and bid for its purchase.
Driver 2. Community asset ownership
• Communities generating wealth and circulating it locally.
• Retaining key local buildings and services.
• Increased financial & operational independence.
‘…there are no substantive impediments to the transfer of
public assets to communities’, The Quirk Review
Pioneers of the movement: Coin Street
The new practioneers 1: Hudswell
Passion, resilience, belief, and
Community Shares (residents)
Grants (RDA, Locality, others)
Loan/Equity (Key Fund)
Co-ops UK (community shares)
Locality & others (business planning)
The new practioneers 2. Hastings
Pier and White Rock Trust
Build membership, mobilise
networks, listen actively and openly,
Passion, politics, campaigns,
resilience, belief, patience……and
Community Share issue
‘A history of community asset ownership’
Community asset acquisition – more
than one tool in the box!
Making the Most of Local
• Community Asset Transfer (demand
• Multiple Asset Transfer (supply side
• Community Shares.
• Community Right to Reclaim Land.
• Community Right to Build.
• Community Right to Bid.
• Compulsory Purchase for
Right to Bid vs Asset Transfer
Right to Bid
Type of asset
Any council owned asset
Defined in Localism Act
Freehold or lease of 25+
The process…step by step…
Get informed, get organised,
If asset sold, up to 6 months
to raise funds to bid to buy
Get 21 people together and
nominate the asset
Asset is brought into
Yes we can!
• Local strengths & opportunities.
• What do we already have?
• What are we capable of?
• Where do we want to go from here?
• What sort of value - intrinsic; a means to an
end, future potential?
• Engagement tools:
• MAP WITH A PURPOSE!
The Place Station
Take (pre-emptive) action
“We want to take over our
town hall and turn it into a
community centre and hub.”
“They’ve closed our village pub how
do we register it as a community asset
and stop it from falling into the hands
Managing the list
• LAs manage the local list of
‘assets of community value’
• Applies to public & private land.
• Nominated by an eligible body.
• LA has up to 8 weeks to decide.
• LA must give notice to list to
owner, occupier, nominee (and
• Right of appeal for landowner.
• If accepted, remains on list for 5
The Post Office?
The Village Hall?
The Corner Shop?
Are all of the local assets of importance in your community
•I’ve no idea
What is an Asset of
Its main use currently, or recently, has been
to “further the social well-being or social
interests of the local community” and there is
a likelihood that it could continue to do so.
Who can nominate?
• Parish councils.
• Neighbourhood Forums (as defined in
Neighbourhood Planning regs).
• Unconstituted community groups of at least 21
people on electoral roll.
• Not-for-private-profit organisations (e.g.
• …with a local connection.
How do you nominate?
By application to relevant LA.
Description of land and boundaries.
Known owners and occupiers.
Reasons why it is of community value.
Evidence of nominator’s eligibility.
Nomination stage is meant to be easy!
Some minor exclusions to
But the main one is
Open to interpretation?
• ‘Social well-being’ - not defined, but in
practice has been applied very widely.
• ‘Social interests’ - is defined, as: cultural,
recreational or sporting interests.
• ‘Recent past’ – not defined, but propose at
least 5 years.
• Internal (LA) review.
• First Tier tribunal.
Chesham Arms Pub, Hackney, judge found that
it is an asset of community value despite
owner’s appeal. http://www.savethechesham.org/
The Moratorium (pause)
• Triggered when owner wants to sell.
• Freehold/25+ lease (vacant
• Owner must inform LA of their
intention to sell.
• LA informs updates the list and
publishes moratorium dates.
• Owner cannot conclude sale, other
than to a ‘community interest group’.
6 months in total
18 month ‘protected period’ where owner can sell again without delay
Who can express an interest
at the moratorium stage?
• Can only be made by a ‘community
• ie: a legally constituted organisation
such as a charity, co. limited by
guarantee (that does not distribute
profits amongst its members), an
Industrial and Provident Society, a
Community Interest Company or a
• Business sold as a going concern.
• Part-listed disposals (where land forms part of larger site, the
remainder of which is not listed).
• Planning obligation, option or pre-emption right made before the
asset was listed.
• Gifts to family members.
• Statutory compulsory purchase.
• Purpose of enabling NHS services to continue to be provided on the
• For purposes of a school, a 16-19 academy or an institution within
the further education sector.
Progress – the big picture
• Broadly welcomed - over 4,000 enquiries!
• 774 nominations / 558 listed (72% success rate).
• Huge breadth and variety of asset types.
• At least 150 pubs listed (half nominated by Parish councils). 36% Parish
Councils taking action on RtB (DCLG survey 2013).
• Libraries, green space, sports
facilities, football grounds, shops,
churches, hospitals, town halls,
barracks…and Greenham Common
Listings: A London & SE bias, so far
No. of listings:
•South East: 91
•South West: 86
•West Mids: 34
•Yorkshire & Humber: 27
•East Midlands: 15
•North West: 14
•North East: 6
London & SE account for
over just over 80% of
successful listings to date
Uttlesford District Council
Yorkshire and Humber
Yorkshire and Humber
Winchester City Council
Test Valley Borough Council
Herefordshire County Council
Braintree District Council
West Somerset District Council
Suffolk Coastal District Council
Arun District Council
East Riding of Yorkshire Council
Leeds City Council
Trends and issues
• Recent past: Some assets of importance to communities are
unfortunately outside of scope.
• Owner appeals: Very few to date. Have been decided in the
• Onerous processes: Some LAs have called for more info. than
strictly required for nomination, eg: proof of ability to purchase.
• 6 month window: Proves challenging when capital demands are
high and lengthy negotiations with landowners/funders required.
Typically, communities also seek (and need)
support with related capacity issues.
Do ACV listings affect planning
“It is open to the local planning authority to decide whether
listing as an ACV is a material consideration if an application for
change of use is submitted considering all the circumstances of
Community Right to Bid: Non-statutory advice note for local authorities, DCLG
Brent Council’s recent decision to refuse planning
permission for the redevelopment of Kensal Rise
The Ivy House Pub, Nunhead, London
Borough of Southwark
The Ivy House pub was
possibly the first place in
the country to be listed as
an asset of community
value using the
Community Right to Bid.
And the fight to save this
historic pub has paid off,
with the pub being
brought into community
ownership in March 2013!
The Bell Inn, Bath: Community Shares
Have an enterprising idea for
running a local asset or
Make the case and galvanise
To issue shares: register
community organisation as an
Industrial Provident Society
Set your funding target based on
your business case
Develop a share offer document
setting out why your
community should invest
Launch and promote share
offer to attract investors
Pre-feasibility grants - £5k to £10k.
Feasibility grants - £10k to £100k.
Eligible whether you use the right or not.
Revenue only - consortia building, training,
expertise, business planning, market research,
• Not intended for equipment, building costs or
• Capital (next year).
Advice and support
• Find out more about community asset projects:
• Take advantage of our Community Asset Mapping Platform:
• Obtain further information about the Community Rights:
www.mycommunityrights.org.uk Tel: 0845 345 4564
• Follow our pilot work with private sector property professionals:
• Use our Whole Life Costing tool for communities:
How much do you know about the Right to
Some of the basics