Dave Chapman has over 25 years of experience working with and supporting communities. He is currently the director of Triformis Limited, a social enterprise focused on community-led development. Chapman has expertise in areas such as community-led development, property negotiations, strategic planning, and project management. He believes that community assets can be transformative when a community has people who are passionate about the project and a clear plan.
4. Forty years ago most towns, villages and neighbourhoods had a
collection of local shops and services that the community could
rely on – a few still have. But the current economic climate means
that many communities now face a stark choice between losing
a shop, business or service or delivering it themselves. As councils
divest themselves of libraries and other assets in order to balance
the books, communities are being asked to fill the gaps. It’s a big ask
– but some communities have already begun to do this, some have
been doing it for years. There are now legal rights and mechanisms
to help make it easier for more communities to do the same.
Community businesses are at the heart of their communities.
They exist because their communities want and need the services
they provide, not because there is a profit to be had, or a resource
to be exploited. Their close proximity to the communities they
serve means that they can learn and adapt quickly to change. But
to offer a service, run a business, generate energy, or build houses
you usually need buildings or land. Community-owned assets can
help make a community socially, environmentally and above all,
economically viable.
This guide offers an introduction to acquiring a community asset –
a building or a piece of land – as the first major step towards creating
the community you want to live in.
We asked Dave Chapman to write this guide because he is a
passionate advocate for community regeneration and he
understands better than most just how transformative community
assets can be. With over 25 years experience of working with and
for communities Dave knows the landscape from grassroots to
government and back again. He has been a volunteer, a trustee
and more recently worked for Locality. He now has his own
consultancy Triformis.
The Eden Team
Foreword
4
5. Introduction 6
What are community-owned assets? 12
Why acquire a community asset? 24
How do you get or create a community asset? 32
Using the right mechanism 50
Community-led development 60
How to make community-owned
assets sustainable 78
Conclusion 86
Contents
5
7. Community-owned
Places and Spaces
It’s been said that the majority of the land in the UK
is owned by just 0.36% of the population. So, how do
ordinary people get access to land and/or buildings
to create community, to call home, to grow food, to
generate energy, and to play in?
Thanks to changes in legislation, communities can
now get to grips with some of these problems and
find ways to provide homes at affordable prices
(both to buy and to rent), create new jobs that
enable our communities to sustain themselves,
and provide vital community services and facilities
without relying on dwindling public funding. In short,
local people are answering the challenge of how we
can make our communities sustainable and resilient
places to live, work and play.
The aim of this guide is to explore, in a very broad
way, what community ownership of assets is
about and give you an idea of what is required and
provide some examples of communities that have
led the way.
7
8. Community assets are the places where local people meet, work,
run errands, shop, access support and socialise. They include pubs,
launderettes, post offices, child-care centres, play areas and parks,
offices – the list is almost endless. These businesses and services are
important for a healthy community because they provide places where
people can meet, make use of a service or engage in meaningful
activity, and in so doing help create a sense of community. Without
them, it’s hard to see how a community can thrive.
In the majority of cases these assets are run as profit-making
businesses or provided through public services. Some of them are
free to use whilst others are clearly not. Over the course of the past
few years many of these spaces and services have been threatened
with closure as a result of the downturn in the economy, because
they are commercial businesses that are unable to make a profit
or lack public funds to keep them running.
Why are community
assets important?
8
9. We all know the places that are of particular value to our
communities; the old town hall, the local park or the library. There
may also be places with great potential too, for example a redundant
cinema that could become a community space, a derelict area of
land that could be used for homes or a vacant shop unit that could
become a community art gallery (even if for just a few months). For
them to become community-owned assets, they need to owned or
managed by the community itself.
But communities are not just about the businesses and services that
are on offer. People need places to live as well. People are starting to
realise that housing is a community asset. Rising house prices mean
that first-time buyers and people on low incomes cannot afford to
buy or rent near where they work. Rather than wait for the market to
respond, people are stepping up to ensure that they can support the
housing needs of their communities.
What can
communities do?
9
10. Shanklin Theatre and Community Trust
When the unitary authority on the Isle of
Wight proposed demolishing Shanklin
Theatre and selling the land in 2008,
local residents began a campaign to
save it. Shanklin Theatre Action Group
(STAGE) managed to get English Heritage
to list the building which meant it
couldn’t be demolished. Then, with the
help of the town council the ownership
of the theatre was transferred to a
community trust in 2013. The theatre is
run by a separate company owned by
the trust and the town council, without
any public subsidies and with the help of
local volunteers. The trust has also been
able to acquire other assets including
the local library. It’s not the first time
the community has had a stake in the
site; the land was originally a gift to the
community from the Lord of the Manor,
and the first building on the site – now
the theatre’s box office – was a reading
room paid for by public subscription.
www.shanklintheatreandcommunitytrust.co.uk
13. What are
community-owned
assets?
This section looks at the characteristics of
community-owned assets and should help
you identify whether you want to develop a
community-owned asset.
13
14. ShopTheatre
Hall
What do they
have in common?
Ownership
They are owned and managed by a
community-based organisation.
Sustainability
Purpose
They are sustainable or trying to be (this
may relate more to the community-based
organisation than the community asset, but
the relationship between them is so strong
it’s often one and the same thing).
It is not about the building or land, it’s about
what they offer. Services and activities that
respond to local need, and are open to all, are
what makes a building or piece of land a real
asset to its community.
Despite the many different types of community-owned
assets, there are three things they tend to have in common.
Every community is different, so it stands to reason that there
is an equally wide range of community-owned assets. These
include houses, pubs, shops, swimming pools, offices, piers,
cinemas, community halls, car parks, and many other examples.
Deeds
14
16. Community-based
organisations
Ownership
Management
Many community-based organisations opt for a common ownership.
In this case the organisation has a membership, where the members
of the organisation (those people who subscribe to the governing
documents) cannot personally have access to the assets and
resources of the organisation (i.e. they can’t profit personally from
the buildings and money the organisation owns, although some
people do have paid jobs). They are held indivisibly rather than in the
names of the individual members.
The two main forms of management structure are collective and
representational. In a collective management structure all the
members serve on the governing body, whilst in a representational
management structure there is a larger membership who elect a
smaller group of members to serve on a governing body.
If a community wants to own and/or operate a community
asset, then it must form a community-based organisation
first. A community-based organisation is any organisation
which is not for personal profit, and which seeks to involve a
defined community in its strategic development, policy making,
management and activities. A community-based organisation
can take a number of different forms and must be a legally-
recognised entity.
Whilst there are a number of different types of legal
structure available to community-based organisations, the
type chosen is generally determined by how it will be owned
and how it will be managed.
16
17. Most community-based organisations also describe both the
community they are seeking to benefit and how they are trying
to benefit that community. Commonly a community is defined
around a place such as a neighbourhood, an estate or a town.
However, there are also ‘communities of interest’. These are
communities that share the same characteristic, for example age,
gender, an issue people feel strongly about (e.g. climate change),
or a common need (e.g. housing).
Participation – more than just being a member
Organisational forms
By empowering people to get involved in the day-to-day activities
of the organisation, as users and/or volunteers, community-based
organisations can help local people to discover the connections
between each other and their community. The connections between
people reveal the common ground in a community, allowing them
to be clear what that community is about, what being involved in the
community can offer and recognise the importance of involving local
people. It builds trust between the members of a community and
helps them find common and collective ways to make the most of
the opportunities and meet the challenges their community faces.
Community-based organisations include charities, community
enterprises, co-operatives, development trusts, and tenants and
residents associations. The form an organisation takes describes
and defines the underlying purpose of the business activity it
undertakes (for example charities work for the benefit of their
beneficiaries, whilst a co-operative does business for the benefit
of its members), how it goes about its business (its values) and
what sector it operates in (for example community enterprise or
food co-operative). Each of these different forms has advantages
and disadvantages and you will need to choose a legal form that is
compatible with the aims of your organisation and its ambitions for
the asset it intends to create or acquire.
17
18. Isle of Eigg
Tired of being bought and sold by successive absentee
landlords, in 1997 the inhabitants of the Isle of Eigg decided to
become their own landlords and effected the first community
buy-out of an island. With the support of both the local
community and people with a connection to the island, Eigg
formed a Heritage Trust.
Now in charge of its own destiny, the island is investing in its
future, setting up the first fully renewable grid in the world
using solar, wind and hydro power in place of the diesel it used
to rely on. It’s not a limitless supply so islanders voluntarily
limit their consumption at any one time. But it’s not just
renewable energy that is helping the island make progress,
its population is on the increase for the first time in years, as
more housing and job opportunities become available.
www.isleofeigg.net
20. Choosing the right legal entity is important and can have
long-term implications for your organisation and the asset it
creates or acquires to run its services. Below is a brief outline of
some of the key features of community organisations – be aware
it is not legal advice! Talk to a solicitor and explore the options before
you make a decision. It is necessary to choose a legal structure for a
community-based organisation in order to define who is responsible
for the organisation, as well as who does the practical things like set
up a bank account.
The legal form of an organisation covers issues such as personal
liability (how much you might be personally liable for the
organisation’s debts if it goes bankrupt), who owns it, how it is
funded (and the kind of funding it can get), governance (how it is run)
and what it can do with its profits.
Most community-based organisations choose a legal form that
means they are ‘incorporated’. This means they form an entity
which has its own separate legal personality. The organisation
can then do business and enter into contracts in its own name.
There are a number of different legal forms that a community-
based organisation can take – they include:
Legal forms
Association
– unincorporated and normally governed by a constitution with a
governing body accountable to a wider membership and it may be
a registered charity.
Company Limited by Guarantee
– incorporated with memorandum and articles of association as
the governing documents, with a Board of Directors accountable
to a wider membership; may be a registered charity if it meets the
criteria. Registered with Companies House.
Community Interest Company
- incorporated with a memorandum and articles of association
as the governing documents. Registered with Companies House.
Cannot be a charity.
20
21. Industrial and Provident Society
– incorporated with a set of rules as the governing document,
with a board or management committee accountable to a wider
membership. There are two types of IPS, a co-operative and a
society for the benefit of the community. Registered with the
Financial Conduct Authority.
Trust
- unincorporated with a deed of trust (or trust deed) as the
governing document, the trustees are the governing body and the
membership. May be registered as a charity if the criteria are met.
A social enterprise isn’t a type of legal entity and the term ‘social
enterprise’ doesn’t describe how it’s run or whose benefit it
is run for. A social enterprise can take any number of different
forms including a charity, a co-operative and even a sole-trader,
along with many others.
“Social enterprises are businesses that trade to tackle social
problems, improve communities, people’s life chances, or the
environment. They make their money from selling goods and
services in the open market, but they reinvest their profits back
into the business or the local community. And so when they
profit, society profits.”
Social Enterprise UK
www.socialenterprise.org.uk
A word on social enterprises
21
22. There are lots of good sources of information about
choosing the right legal structure and organisation
type for what you want to do.
GOV UK advice on legal forms for businesses -
www.gov.uk/government/publications/legal-forms-for-business-a-guide
Advice on legal forms for nonprofits -
knowhownonprofit.org/basics/setting-up-a-charity/legal-forms-for-
nonprofits-1
Cooperative UK legal structure selection tool -
www.uk.coop/our-work/select-structure-tool
UnLtd legal structures for social enterprises - unltd.org.uk/portfolio/3-7-
determining-the-right-legal-structure-for-yoursocial-enterprise
GOV UK advice on Community Interest Companies -
www.gov.uk/government/organisations/office-of-the-regulator-
of-communityinterest-companies
Or why not make a trip to your local Council for
Voluntary Services?
Scottish Council for Voluntary Organisations – www.scvo.org.uk
Northern Ireland Council for Voluntary Action – www.nicva.org
Wales Council for Voluntary Action – www.wcva.org.uk
National Association for Voluntary and Community Action – www.navca.org.uk
History of community-owned assets
There’s a long history of communities owning their own assets. To find out
more and get ideas see:
locality.org.uk/resources/history-community-asset-ownership
Further reading and resources
22
25. Why acquire a
community asset?
This section looks at the main reasons why people
get together to try to acquire an asset, and describes
a few of the more obvious benefits.
25
26. Reasons to acquire
a community asset
Sometimes people want to work together to ensure that a significant
building or an important piece of land is not lost to the community.
Often these buildings have a place in the local ‘psyche’ of the
community and come with a strong emotional attachment. This
can be a good thing, because it motivates people to do something,
but it’s also important not to be blinded by emotion. At some stage
you will need to be critical and dispassionate in order to assess the
feasibility and viability of saving or looking after the building (see the
next chapter for more on this).
In many cases saving a building starts with a campaign of some form,
and ends up with a formal legal group (either an existing group or
one being developed especially for the purpose) taking on ownership
of the asset. Whilst some of the community assets acquired through
this campaigning route house services and activities that are
managed and run by the organisation that develops as a result of the
campaign, many are simply let to others to use.
Communities can provide many of the services they require, but they
usually need land or buildings to operate these services from.
There are generally three main reasons for acquiring or creating
a community asset:
• to save a building or look after a building that is at risk.
• to have a space from which to run a service.
• to develop new spaces to live, work and play.
To save or look after a building
Space to run a service from
26
27. In other cases communities seek to develop their own assets
(community housing, employment space, play areas etc.) through
some form of community-led development. This is often a response
to a need for affordable housing for local people, for business spaces
that local businesses can afford, and for better community facilities.
The aim of these groups is to bring land or buildings forward for
development or redevelopment.
Although the initial emphasis is on buildings or land, in the majority of
cases, what the building or land is used for becomes as important as
the building or land itself. The service and the asset become integral
to each other, which means is that both the service and the asset
have a chance to be financially sustainable; the service needs the
asset as a place to run from, while the service provides an income to
help sustain the asset.
Of course, the truth is that buildings and land cost money even if
they are empty or unused - and when they are used those costs
increase. So, community assets only really work if they have uses that
generate enough to pay for and sustain themselves. For this reason
what the building or land is used for is often more important than the
building or the land itself.
To develop new spaces for a community
27
28. It’s all about the benefits!
Volunteering on a regular basis leads to a greater understanding
of your community and how it works. It can also lead to enhanced
skills, greater capacity and employment.
Practically this means a better understanding of the opportunities
and threats the community faces. Sometimes you find out things
about your community you didn’t know or understand. Often these
things can be really helpful when trying to work with others on the
things we want to change in the community. They give you a base
position to work from, and can mean you don’t end up reinventing
the wheel. This means you can focus your time on working out what
wonderful new things you can do with the wheel you’ve already got!
There are also social benefits. Getting more involved in community
activities can help people feel less isolated and lead to lasting
friendships, new skills and interests.
Groups are able to develop their capacity, but also through their
work they can:
• provide improved access to services and activities
• create jobs
• offer training (to name but a few of the benefits).
What all of these benefits bring to an area is clear; there is an
increased confidence among local people to get involved, and
this often leads to a better sense of identity and pride in their
communities, and of course through management of the assets
But it’s not just about the benefits to the community. There are
benefits that relate to the individuals involved and the group as
well as the area in which the group and asset are based.
For the individual…
For the group…
28
29. there is often an improvement in the local environment, particularly
when the building or land gets refurbished etc.
Most of the agencies and organisations that support local people
who are considering community ownership of assets, and running
local services, would say that both assets and services are likely to be
more sustainable if local people are engaged and involved.
When local people are encouraged to engage meaningfully in local
decision-making this can lead to strong, independent, sustainable
community-based organisations. These organisations are rooted
in their communities through the ownership of income-generating
assets, and they have the power not only to shape, but to take the
lead by establishing community enterprises that deliver local services
and create prosperity.
The benefit to the community or neighbourhood can be
considerable, and if you put all of this together, then community-
owned assets (or more correctly those who own and run them) can
help to stop decline in an area and, more often than not, help
to regenerate that area.
For your community …
29
30. Carn Brea Leisure centre
Opened in 1974, Carn Brea Leisure centre was an important
facility for local people in Redruth, Cornwall, but 25 years later
it closed following a difficult relationship with the external
contractor appointed to run the centre. The staff and users
rallied, forming a charitable company and acquired a 99-year
lease on the premises. They opened with just £250 in the
till and gym equipment bought with a loan. After a fraught
fortnight in which the staff didn’t know if they’d get paid or
not, the centre carried on, and within 18 months they knew
they could survive. Sixteen years later, the centre is still going
strong, and puts much of its success down to the fact that
their independence means they can make quick decisions.
www.carnbrealeisurecentre.co.uk
33. How do you
get or create a
community asset?
There are many different routes to securing and
developing a community-owned assets. The route
you follow will depend on your community, the
asset and the context in which the acquisition or
development is taking place. Don’t be put off by the
fact that there is no one-size-fits-all here – that’s the
joy of living in your community, it’s both the same and
yet different from every other community.
33
34. Gather information
Whatever you are trying to do – save a building, find a building
or develop new buildings - the first thing to do is gather some
basic information.
There is no need to go overboard at this stage and undertake
a large research project but getting the basic information
together is critical if you are going to be able to understand
the size of the task ahead.
34
35. You’ll already have identified the need your project is responding to,
but you’ll still need to know:
• Who owns the building or land you want to develop?
• How much do they want for it?
• Who else might be interested in working with you?
• Who else might support this idea?
• Are there people that would use the building you develop?
If so, how?
Developing new buildings
Things you need to know:
• Who owns the building or land? You could use the Land Registry
search for this - www.gov.uk/land-registry
• What they want to do with it?
• How much do they want for it?
• What are their timescales?
• Who else might be interested in working with you?
• Who else might support this idea?
Discussions start when local people come together to express
a perceived need in their community.
You will already know what you want to do so you’ll need to
ask questions like:
• How are these sorts of businesses run?
• Are there people that would use it?
• Are there people that would be interested in running it?
• Can we find space to run it from?
Saving a building
Space to run a service from
35
36. Work together
The importance of collaboration cannot be understated. Whilst
it’s possible to be bloody-minded and do it on your own,
working in an exclusive way doesn’t chime with the idea of
collective and common ownership and working inclusively; the
characteristics of community-based organisations. Establishing
the common ground is critical. Whether you like it or not you
need to establish trust with others within your community
and you need to try to find time and space to ensure that
everyone is comfortable with the aims and objectives of the
project. If you do this then the next steps are less likely to be
so challenging. Find the common ground to start with and the
likelihood of success is greater.
You can start on your own, but for a project like this you’ll need
more people involved as momentum gathers. Start talking to people
over coffee, picking the kids up from school, in the pub, over dinner,
anywhere people meet and talk, and consider calling a meeting of
your local community.
If you do decide to call a meeting then make sure you are ready and
are clear about its purpose. Is the meeting to ask people to help or is
it just to gauge other people’s views and to make sure that they are
happy with what you are suggesting? As a minimum you’ll need to be
able describe your plans, why you’re planning to do it and how you
think it will work – so knowing the answers to some of the questions
above should help. You will also need to be clear about what you
want people to help with, as they will ask.
36
37. Go legal – develop
the organisation
At some point you will need to set up a legal entity to reduce
your liability. You will need to think about the legal structure
and the form of the organisation as discussed earlier.
At this stage, it’s a good idea to take advice. This could be legal advice
(remember a local solicitor may be happy to offer pro-bono support
- see about pro-bono support below) or advice from a national
support agency (for example Co-operatives UK - www.uk.coop).
Once you’ve decided on the legal structure and organisational form
you will need to register it with the appropriate body, for example
Companies House, the Charity Commission, and/or the Financial
Conduct Authority. The forms you’ll need to complete and the body
you will register with depend on the legal structure you chose.
Pro bono work is any professional work undertaken for free. It
is short for pro bono publico, which translates as ‘for the public
good’. Many lawyers, architects, planners, surveyors and other
professionals are willing to offer pro bono support to good
causes. Pro bono support can really kick-start your project and
can help to start to develop your plan. The key is the old adage ‘if
you don’t ask, you don’t get’.
For further information have a look at the following:
Locality Brokers - www.localitybrokers.org.uk
Law Works - www.lawworks.org.uk
A word on pro bono support
37
38. Create a network
Acquiring, and developing, community-owned assets is not
something that you can do on your own. It almost always ends
up as a collaborative process with people or organisations that
have a stake of some kind in the outcome or the community.
The sooner you start to develop the relationships and build the
partnerships you will need, the better.
So, at a relatively early stage it’s good to carry out a stakeholder
analysis. In other words work out:
• Who do you need to work with? Develop the list of the people
and organisations who should be involved.
• Think about why they need to be involved, and what your ideas
can do for them and what they can bring to the party.
Don’t underestimate the power of networking as a way of starting
to enlist the support of those you will need on your side. So if you
are struggling to have a sensible discussion with your local authority,
or you can’t get the landowner to answer your calls, talk to other
members of your group and work out if they know anyone who can
get you the introductions you need.
Some tips that might help:
• Build on existing networks and relationships.
• Encourage people to make a commitment to the project.
• Quick wins are important and lead to more substantive work.
• There needs to be a critical mass of organisations or people with
the capacity to commit time to the project.
KnowHow Nonprofit - www.knowhownonprofit.org
Further reading and resources
38
41. Ivy House Pub
In April 2012, drinkers at the Ivy House pub in Nunhead, south
London, were told that last orders in five days’ time would be the
pub’s last ever. A farewell drink that night turned into a campaign
to buy the pub for the community, as a group of local people
decided that the doors of the Ivy House had to stay open. Six
months and a lot of work later the Ivy House reopened. In that
time, they had raised almost £1m in loans and finance and a further
£142,000 in community shares and achieved a series of firsts – the
Ivy House was the first pub listed as a community asset, the first
building bought using new legislation in the Localism Act, and it
was London’s first co-operatively owned pub. It wasn’t easy and
the group admit that they were lucky to have town-planners,
architects and finance experts amongst their community able to
assist, but the Ivy House has just achieved another first – its first-
ever beer festival, three years after it was meant to be closed.
www.ivyhousenunhead.com
42. Developing your plan
There are many resources that can be used to help you develop
your plan – those listed at the end of this section are all good
places to start. The key to any plan though is the three Cs:
Is it easy to understand? What you are asking for and why?
It forms a unified whole: it should set out:
• Who is implementing the plan and their background
• The need you are trying to meet
• How your plan will generate money
• How the plan works financially – what’s the mix of funding and
how the idea will be financially viable over the long term
• What the community benefit is.
The first draft of your plan should be one page. If you cannot state
your case in a single page others may struggle to understand it. The
final plan will be as long as it needs to be, but it must be clear and
coherent. Place support documentation in an appendix.
Clear
Coherent
Concise
42
43. Feasibility and viability:
test your plan
At some point it will be necessary to build a case for acquiring
an asset. In short, a feasibility study and an assessment of
viability will be required.
Feasibility is the evaluation of the potential of the proposed project
(can it be accomplished or brought about), while an assessment of
viability will reveal if it stacks up or not financially. One of the things
that must be done is to check that the land and buildings the group
is seeking to acquire really are assets and not liabilities. If they cannot
generate enough income to fund repairs, maintenance and ongoing
operational costs, then they are probably liabilities and other options
should be considered.
There will be a need to gather evidence, and test any assumptions
made, in order to show:
• That the idea is a good one, and has the support of the
local community
• How the local community and local people will benefit
• That the business plan (every project needs to develop a
business plan) demonstrates that the plans stack up financially
(that the ideas are viable).
43
44. Finance - raise money
Whilst there are some community asset transfers that have
secured the freehold of a new asset, fit for purpose and with
funding to support the running costs for two or three years,
such occurrences are rare! It is safe to assume that finance
will be needed.
Crowdfunding works by asking a large number of people to donate a
small amount of money each. It offers the opportunity to get lots of
people involved both locally, nationally and internationally. In addition
to raising money it can also help to raise profile and get people
involved. Have a look at the UK Crowd Funding Association website.
A community share is a form of share capital issued by co-operative
societies, community benefit societies and charitable community
benefit societies. They can be used to help fund all sorts of
community businesses and services. Buying community shares
makes you a member of the business, though you still only have one
vote irrespective of how many shares you own. So, community share
issues are a good way of raising finance and developing a community
membership organisation.
There are many potential sources of income and it’s worth trying a
wide range of different sources. So, include grants and donations
(if your organisation qualifies) and don’t exclude the use of loans
or mortgages if your business plan is robust enough. It’s worth
exploring other sources of finance that could be compatible with the
concept of community ownership including crowdfunding, the use of
community shares, and philanthropic giving.
Crowdfunding
Community shares
44
45. Whilst it may be hard to come by, there are people in many
communities who may be willing to offer funds to get you started.
Don’t underestimate the power of putting your case to your
community. It can open up opportunities (and release the potential)
in ways that you may never have imagined, including donations.
All too often we are afraid to ask: don’t be. The worst that can
happen is you’ll get a no, the best, well...
These three means of raising finance are important because they
involve more active participation by your community than many of
the other methods of raising finance (grants, loans etc.).
They’re also a good way to mobilise people to support what you
and your organisation are trying to achieve because they are more
participatory and democratic.
Philanthropic giving
The following are just a selection of places where you might
look for funding:
Big Lottery - Asset transfer and capital programmes -
www.biglotteryfund.org.uk/research/communities-and-places/
community-assets
Heritage Lottery Fund - www.hlf.org.uk
Sport England - www.sportengland.org/funding
Social Investment Business - www.sibgroup.org.uk
Charity Bank www.charitybank.org
Charities Aid Foundation - www.cafonline.org
Community Development Finance Institution www.cdfa.org.uk
Government Funding Database govfundingpublic.nics.gov.uk
Association of Charitable Foundations - www.acf.org.uk – see Links to ACF
Member Trusts and Foundations
New Philanthropy Capital - www.thinknpc.org
Community Shares - www.communityshares.org.uk
UK Crowdfunding Association - www.ukcfa.org.uk
In additionyourlocalvoluntaryand communitysectorsupport
organisation maywell have access to databases with lists offunders.
Further reading and resources
45
46. Negotiate
Negotiate, negotiate, negotiate and then negotiate some more!
It’s easy to take ‘No’ for an answer and give up. Most asset
acquisition involves being told ‘No’ a number of times before you
get a ‘Yes’. Having a clear, coherent and concise plan in place and
enlisting the support of the relevant professionals will help in all the
negotiations – with local authority, with the planners, with the bank,
with the landowner etc.
Below are some useful websites to pick up information on
developing your organisation, developing your plan and
securing funding and finance.
Community Matters - www.communitymatters.org.uk
Plunkett Foundation - www.plunkett.co.uk
Co-operatives UK - www.uk.coop
Social Enterprise Coalition - www.socialenterprise.org.uk
Social Firms UK - www.socialfirmsuk.co.uk
School for Social Entrepreneurs - www.the-sse.org
Action with Communities in Rural England - www.acre.org.uk
Community Enterprise Scotland - communityenterprise.co.uk
Community Enterprise Wales - www.cewales.org
Community Enterprise Network - www.communityenterprisenetwork.org
Further reading and resources
46
48. Valleys Kids
The Rhondda Valley has the highest rate of teenage
pregnancy in the UK, 12,000 of its young people
are not in education, training or employment, and
a quarter of its children live in poverty. Now in its
35th year, the Valleys Kids organisation was set up
to address these problems by offering activities,
training and breaks from the harsh reality of life in
the Rhondda valley. Started in a white-washed cellar,
over the years Valleys Kids has acquired a former
chapel, a former soft drinks factory, a cottage in
the Gower, and four community hubs, to deliver its
services and activities to local families and young
people. Although Valleys Kids didn’t set out to acquire
property, it became clear that it needed buildings
to house its programmes, and today that range of
programmes is helping to improve local people’s lives.
valleyskids.org
51. Using the right
mechanism
There are a number of legal rights
and mechanisms that can help your
community acquire building, bid for land,
or bid to run local authority services.
51
52. Communities have a number of rights and mechanisms they can
use to acquire assets, land, or bid to run services. Which rights
you can use will depend on where you live; while community
asset transfers are UK-wide other rights only apply in England
or Scotland. Below is a summary of some of the key rights
currently available to communities across the UK.
There are a number of mechanisms that can be used to
secure the ownership of an asset. You may find you need
to use more than one.
For those communities not lucky enough to be gifted or left an
asset, the main options are either to purchase them or to negotiate
some form of community asset transfer. Community asset transfer
applies across the UK, so it’s worth understanding a little more
about this option.
Community asset transfers can be described as a change in
management and/or ownership of land or building from public
sector agencies to community-based organisations. Not all
community asset transfers result in the freehold acquisition of the
asset by the community-based organisation. They can result in long
leaseholds, short leaseholds or simply a licence to occupy. Finance
and funding is discussed in more detail in a later section, but it’s
worth noting that if there is a need to secure grants and or loans to
enable the transfer or to develop the asset, any lease will probably
need to be at least 25 years long.
It’s also worth noting that ownership and management are two
different things and there are a significant number of community-
based organisations that do not own the freehold of the assets
they are operating from. These organisations have a variety of lease
and licence agreements. It’s not uncommon to begin by obtaining a
lease or a licence and then progress to owning the asset later. Many
community-based organisations and community businesses have
developed their asset base through this route. It’s a good way to test
Community Asset Transfer - UK Wide
Eng Sco Wal NI
52
53. the water and determine whether the business or service generates
sufficient surpluses to cover the costs associated with the asset
before committing to buying the asset itself.
Whilst the history of communities owning their own assets is long,
in recent years Government policy has sought to help many more
community-based organisations take on assets (and run services
from them).
The policy has led to a number of legal mechanisms that can enable
and support the acquisition process, for example the use of the
enabling powers through Localism and the Community Rights in
England, and the Community Right to Reclaim Land and use of the
Right to Buy in Scotland.
Each of these mechanisms can be used in specific circumstances
or under specific conditions, so you will need to familiarise yourself
with the details. It’s beyond the scope of this guide to explain these
mechanisms in detail but more information on them can be found on
the following websites and/or resources. The key is to understand
enough about these other mechanisms to be able to connect them
so as to support your negotiation.
In Scotland the Community Right to Buy is a pre-emptive right which
provides an opportunity for a community body in communities with
a population of less than 10,000 to apply to register an interest in
land and the opportunity to buy that land when it comes up for sale.
There is a formal application process to register an interest in the
land and only once the application passes checks and is approved
is the land entered on the Register of Community Interests in Land
(RCIL). Once registered the interest remains in place for 5 years (it
can be renewed), during which time if the landowner seeks to sell
or transfer the ownership of the land it is valued and the community
body have 6 months to complete the purchase.
Other Mechanisms
Community Right to Buy – Scotland Only
Eng Sco Wal NI
53
54. There are a number of community rights in England which, while
they don’t necessarily lead to the acquisition of assets, may have a
role to play. These include:
This gives community groups the chance to request that
their local authority list assets they believe to be of value to the
local community.
If the local authority accept the application for listing then the
asset is held on the local authority list. See your local authority
website for their guidance and the application process they wish you
to use – you can find your local authority here: www.gov.uk/find-
your-local-council
If the owner seeks to sell the asset this triggers a moratorium
of 6 months during which time the community group can prepare
a bid.
The landowner does not need to accept the bid, so this right confers
no guarantee, but there are now a number of examples where this
mechanism has resulted in acquisition.
Community Rights – England Only
Community Right to Bid - England Only
Community Right to Buy – Scotland Only - www.gov.scot/Topics/farmingrural/
Rural/rural-land/right-to-buy/Community
Community Rights – England Only - mycommunity.org.uk
Eng
Eng
Sco
Sco
Wal
Wal
NI
NI
Further reading and resources
54
55. The Community Right to Challenge allows community-based
organisations (and a range of other groups and organisations) the
opportunity to bid to run local authority services where they believe
they can do so differently and better.
A written expression of interest must be submitted to the local
authority, which if accepted will trigger a procurement exercise.
The interested group may take part in the procurement exercise,
alongside others.
Using the Right to Challenge is not appropriate for asset acquisition,
but as most services are delivered from assets (buildings),
considering what’s required to make a successful challenge to
take on a service (the business planning work) might help in the
preparation of a business case.
The Community Right to Reclaim Land allows communities to ask
their local authority (and other public bodies) to sell land that is
unused or underused so that it can be brought back into use.
A request must be made to the Secretary of State for Communities
and Local Government. This should set out:
• why the community think land or property is vacant
or underused
• that there are no plans in place or likely to be put in place
that affect the land
• why disposal of the land would enable it to be brought back
into use
If the Secretary of State decides that the request is valid then a notice
can be issued to the landowner requesting that he or she sells the
land (normally on the open market).
Community Right to Challenge - England Only
Eng
Eng
Sco
Sco
Wal
Wal
NI
NI
Community Right to Reclaim Land - England Only
55
56. The Right to Contest allows communities, businesses and local
authorities the right to challenge Government to sell land it owns for
better economic use. The Right to Contest can be used to argue that
land currently in use could be put to better economic purpose.
In addition to the Right to Bid, the Right to Challenge, the Right to
Reclaim Land and the Right to Contest, the Community Right to Build
and Neighbourhood Planning are also worthy of consideration. As
these are related to planning both are dealt with under the routes to
planning in the next chapter.
Eng Sco Wal NI
The Right to Contest - England Only
Although not strictly a way to acquire or create a community-
owned asset, Meanwhile Use could be used as a useful first step
if you need to show that you can develop an idea and make it
work.
Meanwhile Use is a temporary use of vacant buildings (often
shops) for beneficial purposes by the community until such time
as the building can be commercially let or sold. If your group has
an idea that needs developing, Meanwhile Use might allow your
group to test the idea, show there is a demand for your proposal,
and refine it before taking on a more formal lease.
Have a look at www.meanwhile.org.uk for more information.
A word about Meanwhile Use
56
57. Community Right to Reclaim Land - www.gov.uk/government/policies/giving-
people-more-power-over-what-happens-in-their-neighbourhood/supporting-
pages/community-right-to-reclaim-land
The Right to Contest - www.gov.uk/right-to-contest
Locality - locality.org.uk
Development Trusts Northern Ireland - dtni.org.uk/
Development Trusts Association Scotland - www.dtascot.org.uk
Development Trusts Association Wales - www.dtawales.org.uk
Further reading and resources
57
62. Getting started
For communities wishing to build new houses,
workspaces or community facilities, the process
they follow is often described as community-led
development. In these cases the community, rather
than a developer, leads the process of development.
This section provides a number of pointers to the
things you will need to consider if you are going to
lead a development of your own assets.
The number of communities seeking to undertake
new development is growing, as is the diversity of
development they are seeking to complete. Community-
led development now includes new housing, farms
and spaces for growing, renewable energy projects,
workspaces, play areas, new community facilities and
new health facilities to name a few.
62
64. It’s impossible to cover all of the elements of work that you
may need to complete during this phase but the following
commonly arise.
There are generally three distinct phases to a new development:
• Pre-development: this phase starts with the idea, gets the plan
together about what, who, where and how and will commonly
conclude in a planning consent and the necessary permissions
from all the relevant agencies to carry out the development.
• Development: this stage involves construction and ends with a
completed new building/s.
• Post-development: this starts from the point that the new
building is occupied.
Some of this has been covered in previous sections but in essence
you need to have a clear brief for the development you are
proposing. Why is it needed? Who will use it? How will it be funded?
What are the steps that are needed to make it happen?
When you start it’s highly likely that the brief will be sketchy. The aim
of the pre-development stage is to firm everything up, and gather
as much knowledge and understanding as you can to ensure that
before you start the development you have a really robust business
plan which has the support of those you will need to work with to
make it happen.
In order to help you develop your ideas and turn them into a robust
funded plan you are likely to need support from specialists such as
architects, planners, structural engineers, ecologists, cost consultants
etc. etc.
The team you need will depend on the development you want to
undertake. Together this group of specialists will help you to fully
develop the brief and undertake feasibility work.
Phases of development
Developing the ideas
A team approach
64
65. Undertaking feasibility work and assessing the viability of your
scheme are going to be key elements of the pre-development work
you will need to complete.
As has been said before, in the early stages of developing your ideas
you will need to think about the sort of organisation you will require.
The resources listed in the section on legal forms and Go Legal are a
good place to start. As also said before it’s a good idea to take advice
on the best organisational and legal route to use as this may need to
marry with what you are trying to develop.
Feasibility and viability
The right organisation
In addition to supporting the work required during pre-development
the specialist team will also be able to provide support throughout
the development phase so that the project is delivered on time and
in budget.
If you’re planning to build something, then it might be worth
considering setting up a Community Land Trust. There are five
key features of community land trusts:
• They are community-controlled and community-owned
• They have an open democratic structure
• The provide permanently affordable housing or other assets
• They are not-for-profit
• They provide long-term stewardship of any development
For more information about community land trusts in England
and Wales see Community Land Trust Network UK:
www.communitylandtrusts.org.uk
For more information about community landownership in
Scotland see:
www.communitylandscotland.org.uk
A word about Community Land Trusts
65
66. During the pre-development phase you will also need to develop the
business plan. This includes both a plan for finances to complete the
building (capital finance) and the plan for the running of the building
once completed (revenue finance). Depending on the scale of the
development proposed the costs of this phase can vary greatly.
Unfortunately, pre-development finance is not easy to come by so be
prepared to work hard to try to secure what limited grant or at-risk
loan finance there is (some of the funders listed in the Finance- raise
money section offer pre-development funding) and don’t forget to
ask those who may be prepared to offer pro bono support.
In addition to securing finance, or support, to develop the plans the
pre–development phase is also where you need to seek commitment
from funders and investors for the build phase (the Development
phase). In most cases you will also need to show that you have a
financially sustainable plan for running the building.
Business case and finance
Our
Plan
66
67. A key element in many community-led developments is planning.
If you need a planning consent to undertake your project, it is well
worth speaking to your local planning officers early on. It may also be
worth making a pre-planning application.
Most local planning authorities offer such a service, aimed at giving
applicants, architects and developers clear advice about whether the
council would be likely to recommend approval for a scheme. This
service also enables planning officers to suggest any changes that
may be needed prior to making an application.
The benefits of pre-application advice are:
• Gives you an opportunity to understand how the local council’s
policies will be applied to your development
• Helps you identify potential problems and sort them out before
an application is submitted
• Can prevent costly and time-consuming amendments to your
schemes later on.
Most community groups wishing to undertake a new build will
establish the brief for the building, develop the plans and designs and
then submit a planning application to the local planning authority.
The application will be determined by planning officers and elected
members (the Development Control Committee). They will consider
the plans to ascertain if they are in accordance with local and
national policy. Plans are then approved and granted a consent
(sometimes with conditions that need to be met), or not, as the case
may be. This is the conventional and most common route to getting
a planning consent.
Routes to planning
Planning Portal - www.planningportal.gov.uk
Planning Authorities in Scotland - www.gov.scot/Topics/Built-Environment/
planning/Roles/Planning-Authorities/Information
Planning Authorities in England and Wales - www.planningportal.gov.uk/inyourarea
Planning Authorities in Northern Ireland - www.planningni.gov.uk
Further reading and resources
67
68. Although following the conventional route (submitting a planning
application to the local planning authority) will still be the first
choice for many community groups seeking to develop, in England
the Localism Act 2011 introduced an alternative route by which
community groups can gain a planning consent known as the
Community Right to Build.
How does the Community Right to Build Work?
In order to make use of the right, members of the community will
need to set themselves up as a corporate body. This means you need
to have a legal entity; individuals can’t use the right. The purpose of
the group must be to further the social, economic and environmental
well-being of the local community. It also worth noting that any
benefits that come from the development must be retained or used
for the benefit of the community.
As a group, you would then manage the process of putting in place
the Community Right to Build Order. In essence the Community Right
to Build requires a number of formal stages as follows:
• Establishing community support: you need to be sure you have
good community support for your proposals.
• Defining the neighbourhood area: the Community Right to Build
is part of the ‘Neighbourhood Planning framework’. This means
that Community Right to Build schemes must be within a defined
neighbourhood area which has to be agreed with the Local
Planning Authority.
• Developing a business case: the community group must identify
suitable land, sources of finance and secure local agreement for
their proposals.
• Preparing a Community Right to Build Order: before making
an application to the Local Planning Authority for approval of a
Community Right to Build Order, the community organisation
must also carry out publicity and consultation to ensure
everyone in the community and certain specialist bodies have
the chance to comment on the proposals. The onus is on the
community group to carry this work out.
Community Right to Build Orders - England Only
Eng Sco Wal NI
68
69. • Submitting a Community Right to Build Order: after the
Community Right to Build Order has been drawn up, it must be
approved by an independent examiner to ensure that it meets
certain standards.
• The Referendum: If the proposed order meets the basic
conditions then the examiner will recommend that it proceeds
to the referendum stage. The proposed order is passed on to
the local authority to be put to a local referendum so people
can vote on whether they want the development to go ahead.
The local council is required to organise a referendum, open
to all registered voters in the defined neighbourhood area.
In some cases, it may be opened to a wider area if there are
broader implications of the development being approved. If the
referendum receives the support of over 50% of those voting,
then the Community Right to Build Order is passed and the
council must grant planning permission.
Although by no means an easy route to planning (you will need all
the information normally submitted with a conventional planning
application alongside business plans), the Community Right to
Build offers an alternative which may be of real value in some
communities.
For more detail about the right have a look at:
http://mycommunity.org.uk/programme/community-buildings-housing
Further reading and resources
69
70. Whilst not an immediately obvious route to follow, both
Neighbourhood Development Plans and Neighbourhood
Development Orders are something that you should look into, as they
may provide an opportunity to position your ideas and plans, and so
may help with delivery once you get to that point.
Neighbourhood Development Plans
Neighbourhood Development Plan are community-led
frameworks for guiding the future development of an area.
In the past, plan-making processes have been led by local
authorities, but now neighbourhood planning allows local
people (through a recognised qualifying body – either a town or
parish council or a neighbourhood forum in un-parished areas)
to develop planning policy and proposals for improving their
neighbourhood area. If these plans receive a 50% ‘Yes’ vote in a
referendum they are then made.
If made, the Neighbourhood Development Plan becomes part of
the statutory development plan for the area. This means that local
authorities will take the plan into account when making planning
decisions. So, by preparing a Neighbourhood Development Plan
local people are being given the opportunity to:
• Choose where they want new homes, shops, offices and other
development to be built
• Have their say on the design of new developments.
Clearly this does not mean that things get built immediately but
they provide an opportunity for the development to take place
over the lifetime of the plan.
Neighbourhood Planning - England Only
Eng Sco Wal NI
70
71. Neighbourhood Development Orders
A Neighbourhood Development Order (NDO) sets out the kind
of developments permitted in an area. Once it is in place there
is no need to apply for planning permission for the kind of
developments described in the NDO.
Neighbourhood Development Orders can only be brought
forward by a qualifying body (either a town or parish council
or a neighbourhood forum) either as part of a Neighbourhood
Development Plan or independent to the plan. In preparing a
Neighbourhood Development Order (NDO) the qualifying body
must go through the same process as that to be followed when
preparing a Neighbourhood Development Plan, and the Order
must meet the basic conditions. However, once it is established,
the order grants planning permission for specified developments
in a neighbourhood area and there would be no need for anyone
to apply to the local planning authority for planning permission if
it is for the type of development covered by the order.
A Neighbourhood Development Order should make it easier and
quicker for the kind of development it describes to go ahead in
the future.
My Community – mycommunity.org.uk/programme/neighbourhoodplanning
Planning Portal – http://www.planningportal.gov.uk/inyourarea/neighbourhood
Further reading and resources
71
72.
73. Limavady Community Development Initiative
One of the largest community groups in Northern Ireland, the
Limavady Community Development Initiative was set up in 1987
by local people concerned by the high levels of unemployment
in the area. A decade later, LCDI had outgrown its premises and
asked the Department of Health whether they could acquire
and redevelop a former hospital. The initial response was not
encouraging, but after engaging with Department officials and
pulling together a local steering group which attracted over
£2m of funding, LCDI acquired and refurbished the complex.
Originally a Victorian workhouse, the complex is now home
to a range of community and social care projects including
specialist medical clinics, daycare centres, community transport
and recycling projects, all of which rent space from LCDI. This
gives LCDI a sustainable source of income and allows them to
further their work in the local community and beyond; LCDI
now employs over 60 people, supported by 100+ volunteers.
The organisation views itself as a successful Social Enterprise.
www.lcdi.co.uk
74. How might Neighbourhood Development Plans and Neighbourhood
Development Orders help groups seeking to build new facilities?
As the qualifying body must work inclusively within its community
there is a real opportunity for local groups and community-
based organisations that want to develop new facilities to try to
incorporate their plans into the Neighbourhood Development Plan
or Neighbourhood Development Orders, or through alignment of
strategic priorities (for example, the community group’s plans are
the same as those in the Neighbourhood Development Plan).
Whilst not an easy route, Neighbourhood Development Plans
offer a way for local communities to set planning policy for their
neighbourhood, and Neighbourhood Development Orders and
Community Right to Build Order offer communities a way to develop
the sites (and therefore services) that they want and need.
It’s also worth noting that whilst developers are encouraged to
engage with communities prior to submitting applications for
planning, all too often this translates into ‘here are our plans what
do you think?’ Through mechanisms like the Community Right
to Build Order there is a real opportunity for communities to
be truly engaged in what development takes place in their
communities. Mechanisms such as the Community Right to
Build Order and Neighbourhood Development Order, and more
widely Neighbourhood Planning, provide for participative and
representational democracy in both local planning policy and local
development. This should be the norm for all development.
Community engagement and involvement
in development – an opportunity?
Further support with planning - Planning Aid offers advice
and support:
Planning Aid England – www.rtpi.org.uk/planning-aid
Planning Aid Scotland – www.pas.org.uk
Planning Aid Wales – www.planningaidwales.org.uk
Planning Aid Northern Ireland – www.newryandmourne.gov.uk
Further reading and resources
74
76. Land acquisition by community-based organisations is not easy (the
same goes for acquiring redundant and derelict buildings) but it’s not
impossible. Clearly if you have funds, purchasing land is the obvious
route, but if you don’t have funds, then you may have to persuade the
landowner to deal with you.
The first stage in any form of land acquisition is finding out about the
land and whether it’s available. This stage is commonly followed by
negotiation. If the land is available you’ll need to strike an agreement
with the landowner to secure your interest in the land if you can’t
buy it. If the land is not available and doesn’t appear to be being used
then it’s often still worth talking to the landowner as they might be
interested in dealing with you and listening to your ideas.
There are a number of forms of agreement that can set out an
effective route to acquiring an interest in the land (or other asset).
In all cases it is well worth taking advice (think pro bono!) to make
sure you get the most appropriate agreement for your set of
circumstances. Whilst these agreements do not immediately result in
Land acquisition
76
77. the acquisition of the land, they set out the route to be followed and
offer the possibility of acquiring it. The types of deal that are the most
commonly used ‘structures’ for land transactions include:
• Freeholds with overage provisions, such as ‘uplifts’ and
‘clawbacks’: in this case the contract for sale will include a
clause which will set out how much financial share (the overage)
the purchaser must pay to the seller if the purchaser is able
to increase the value of the land (through a planning consent
for example). The clause will also set out when and what the
triggers are for the payment of the share.
• Non-binding ‘lock out’ or ‘exclusivity’ agreements: these sorts
of agreements prevent other interested buyers from agreeing
a deal with the landowner whilst you get the time to complete
things such as getting a planning consent etc. So they are often
used when both the prospective purchaser and the seller
need time to agree the nature of the deal. They are often not
legally binding agreements but show the good faith between
both parties.
• Option agreements: these are legally binding agreements which
set out what the prospective purchaser must do and by when
in order to trigger the sale of the land/building. The benefit of a
formal legally binding agreement with the landowner, which sets
out the route you need to take to purchase the land, is that it’s a
tool to provide some form of certainty and therefore can be used
to raise finance.
Further resources: the following resources provide further
advice and guidance on undertaking and completing a
development:
Royal Institute of British Architects - www.architecture.com
Locality, To Have and to Hold - locality.org.uk/resources/hold
Community Buildings Checker - www.communitybuildingschecker.org.uk
Locality Brokers - www.localitybrokers.org.uk
So you want to build a house - locality.org.uk/resources/build-house
Further reading and resources
77
79. How to make
community-owned
assets sustainable
Sustainability should be one of the key attributes
of any community-based organisation that owns
assets, and of the activities and services provided
from or through the use of these assets.
79
80. Clearly, to be an asset (rather than a liability!) a community-
owned business or service should contribute towards the
long-term financial, social and environmental sustainability of
its community. In most cases it’s really not the asset but how
it is run and the services it offers that determines whether it
can be sustainable. These are the things that help to create
community, develop the sense of identity within a community,
and create a ladder of opportunity for those who use and
access the services and space provided.
Put simply, unless it’s able to sustain itself financially it will be
difficult for backers to offer long-term support. In addition, one of
the benefits of community-based organisations is that they often
help with the circulation of money within their community. They do
this by employing local people and/or using local businesses and
suppliers. This in turn can help foster greater community cohesion,
a sharing of the common vision of the community and a greater
sense of belonging. It’s another example of how community-based
organisations and community assets help to create more sustainable
and resilient communities.
Community benefit is also key. This often means that the community
asset provides a mix of commercial and community uses. The
commercial uses help to generate an income, through the use
of the asset, which allow community services and facilities to be
provided at less than commercial rates. In this way services delivered
from community assets help to balance financial sustainability and
community benefit.
Many community-based organisations try to be environmentally
sustainable as well. This covers both how a building might run
(saving energy, generating energy, waste management etc.), and
the activities that take place within it which promote environmental
sustainability, e.g. ethical shopping, advice on renewable energy.
(recycling, shopping ethically).
Financial sustainability
Social sustainability
Environmental sustainability
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81. A community that owns assets can anticipate and adapt quickly to
change. It can also shape its own future. Community-owned assets
can offer:
• A stronger position – if your community organisation has a
freehold or long leasehold, it goes on the organisation’s balance
sheet as an asset. This puts you in a much stronger position to
act as a business.
• Added value – if they are financially sustainable then they
already add value because of the way they work. If they generate
surpluses then this income can be used to deliver services that
are otherwise hard to fund.
• Self-determination - if a community owns its assets and is
financially sustainable it can set its own priorities without
worrying about changes in local government or changes in
government funding.
All of these things mean that community-owned businesses can
keep going regardless of the chaos around them. They can control
their situation, generate their own income and deliver their own
balance of business.
Unlocking the potential
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82. The risks
Getting involved in the community ownership of assets is not
without its risks.
The key risk is that your organisation lacks the manpower or the skills
to take on and manage the asset. The result is a liability that cannot
be maintained. Such failures tend to result in a loss of confidence
with the community and fear of trying again.
One of the ways to mitigate this risk is to make sure that your
eyes are open from the outset. It is easy to become misty-eyed
over a building or a bit of land which we have a connection with.
However, if you are going to make it work as a community asset,
the sooner you look at the feasibility and viability of what you
propose the better. Make sure that your feasibility and viability
work is robust and that your plan is realistic. Enlisting the help
and support of professionals and getting independent advice will
help immeasurably.
Most assets can be made to work if you work hard at the feasibility
stage; they tend to fail when you don’t plan and don’t properly assess
what’s possible.
Remember, it often takes time to develop any form of community-
led work, and often those involving community-owned assets are
the longest projects to come to fruition. So, don’t get disillusioned if
things don’t happen immediately.
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89. Many communities have found community asset ownership
to be a game changer because it allows communities to
develop in a way that is appropriate for them, responding to
needs as they emerge. In the long term it helps to make any
community more resilient.
That said, whilst community asset ownership is a good thing, it’s not
without its challenges. So, when you start to think about making the
journey to bring assets into community ownership there are four
things that are worth remembering.
Firstly, it’s unlikely that you’ll be able to make the journey alone; you
will need other people. The sooner you start to gather others about
you who share the same vision and passion the better and easier the
journey will be.
Secondly, it’s critical that you understand the journey you want to
make. As you know where you are now (no asset, no money, no
group) and where you want to be (community arts workshop with
residential accommodation owned by those who live and work
there), you’ll be able to put together a simple plan and initial checklist
of the things you’ll need to do to make your journey. Starting with a
plan is critical, deviating from the plan is not uncommon, but unless
you have a plan you won’t know you’ve deviated, and so you won’t
know how far away you are from where you want to be!
Thirdly, whilst there are common elements to every asset acquisition
there are nearly always differences as well. Often the key to acquiring
an asset is the ‘work around’; using the tools and mechanisms
available to you in a way that’s right for you and helps you move
forward. If you get stuck don’t be afraid to try different strategies to
keep it going.
Finally, remember the prize. In a changing world a community asset,
owned by its community, can give something to future generations
who will live in your community. For many they create anchors, or
beacons of hope, upon which the future of the community can be
built. They also provide continuity in a rapidly changing world that
helps to root us in our communities and allows us focus on the here,
the now and the future.
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92. How do ordinary people get access
to land or buildings to run businesses,
offer services, generate energy or
build houses? Community-owned
assets can help make a community
socially, environmentally and above all,
economically viable. This guide offers an
introduction to acquiring a community
asset – a building or a piece of land – as
the first major step towards creating
the community you want to live in.
