Assets of Community Value and Community Right to Bid
The local authorities' lists of 'assets of community value' and the 'community right to bid' were brought into law with the Localism Act 2011. An asset can be listed if its current or recent main use is to further the social well-being or social interests of the community, and is likely to do so in future.
When a listed asset is put up for sale, a moratorium on the sale (of up to six months) may be invoked, providing local community groups with more time to raise finance, develop a business and make a bid to buy the asset.
Nomination
A nomination to list an asset as being of community value can be made by a parish council, a local community group such as a charity or company, or an unconstituted group with more than 21 members (which is what we did for the Fox). After receiving a nomination, the district council (Huntingdonshire in our case) have up to 8 weeks to decide whether or not to include the asset on their list. FVPS nominated the Fox on 5 July and HDC made the decision to list it on 9 August 2013.
Six week interim moratorium
When a listed asset is put up for sale, an initial six-week interim moratorium kicks in, and the owner cannot sell the asset during this time, with few exceptions. (Link to list of exceptions.)
As the Fox was already on the market for sale, the six weeks started from the date of listing in this case.
During the interim moratorium any community interest group could decide if to trigger the full six-month moratorium.
To trigger it would be making a written expression of interest to be treated as a potential bidder. This would be non-binding and groups do not need to provide any evidence of intention or means to purchase.
Six month full moratorium
If a community interest group made an expression of interest, the owner would not be allowed to sell the pub for six months, unless it was to a community interest group, with few exceptions. (Link to list of exceptions.)
To trigger the full moratorium, a group needs to be a properly constituted organisation, of one of these types:
(a) A charity
(b) A community interest company
(c) A company limited by guarantee that is non profit distributing
(d) An industrial and provident society that is non profit distributing
(e) A parish council
After the moratorium
At the end of the moratorium period, the owner is free to sell to whomever he wants at whatever price is agreed. The asset is also protected from any further moratorium for the next 18 months.
After 18 months, if the asset is still for sale, the moratorium periods may start again.
Either way, the property will still remain listed as an Asset of Community Value for five years.
Further information on the legislation behind this process, and on related subjects, can be found on the USEFUL INFO & LINKS page of this website.