Assets of Community Value: a serious upgrade

Strengthening local communities has a been key focus of central government policy for some time. You do not need to look far to find headlines describing groups of local people valiantly rallying together in order to save a much beloved post office, pub, town hall or similarly treasured local amenity from being closed, sold off or redeveloped. An important tool in enabling these local efforts is the Assets of Community Value (“ACV”) regime which was introduced by the Localism Act 2011.

The ACV regime confers statutory rights on local communities, enabling them to play a more active role in the future of valued community assets by intervening in the disposal process. In short, the 2011 Act grants local community groups and parish councils the power to nominate a local property asset (both buildings and land) as an Asset of Community Value; if successful, that nomination sees the ACV added to the district council’s list of ACVs for five years, during which time the owner’s power to sell or otherwise dispose of that ACV is curtailed.

On the face of it, this may appear to be an unattractive proposition for property owners; try to sell your land and the local communities can intervene in the disposal process. Well, not quite. In practice the ACV regime is often perceived as more of a nuisance to landowners rather than a serious means of preventing a sale of their property. The current rules under the 2011 Act are generally viewed as influencing the timing of a disposal rather than preventing one altogether. That’s about to change.

The English Devolution and Community Empowerment Act 2026 received Royal Assent on 29 April 2026 and will effectively replace the ACV regime that has existed since 2011. Whilst we do not yet know when the new system will come into force, it is already clear that the changes are intended to strengthen the position of local communities in relation to assets of community value. This article considers the four most significant changes the 2026 Act will introduce.

1. New community right to buy

Under the 2011 Act, local communities are given a ‘right to bid’ in respect of ACVs; if the owner of the ACV seeks to sell it, a statutory moratorium is triggered, giving community groups a limited window in which to prepare their own purchase bid for that ACV. The effectiveness of this power is somewhat limited however, as the owner of the ACV is not bound to accept the bid put forward by the community group, even if they offer the highest price for it; the owner remains free to sell to whomever they choose. It is for this reason that the powers conferred under the 2011 Act are often viewed as providing communities with only a limited ability to influence the outcome of a disposal.

The 2026 Act replaces the ‘right to bid’ with a much more robust ‘right to buy’, with landowners being required to offer to sell their asset to the nominating community group (or a specified alternative group) before they offer to sell it on the open market. In practice, this will operate as a statutory pre-emption right, similar to those found in strategic land deals entered into between landowners and developers. This new ‘right to buy’ will need to be taken seriously by landowners, with the 2026 Act setting out a detailed statutory framework in relation to serving offer notices, agreeing price and timelines for offer and acceptance procedures.

2. Expanded definition of assets of community value

As already touched on, local groups tend to get protective over local amenities such as village halls, pubs, public parks, car parks. That said, not just any land or building can be nominated as an ACV. The Act does specify the kind of land or buildings that a local group can nominate but not by reference to a fixed (and therefore narrow) list of descriptors. Instead, any land or building will be eligible as long as it passes one of the following two tests:

1. where it’s primary, current use furthers the social wellbeing or interest of the local community and it is realistic to think that the land can continue to be used to that end; or

2. where it has previously been used for furthering the social wellbeing or interest of the local community in the recent past and it is realistic to think that it could be used to that end again, within five years.

The 2026 Act significantly expands the scope of the land and buildings that are considered eligible for nomination as an ACV by including any assets that further the economic wellbeing of the area as well. In addition, the requirement for the asset to have been so used in the ‘recent past’ has now been removed; it is enough to show that the asset was so used at any point in the past.

3. Sporting assets of community value

A whole new category of ‘sporting asset of community value’ is going to be introduced, with qualifying assets being given a new level of enhanced protection under the ACV regime. That protection will take two forms.

1. A sporting ACV is placed on the governing council’s list of ACVs by virtue of the 2026 Act alone; it does not need to be nominated for listing by the community group.

2. A sporting ACV remains on the ACV list indefinitely; it does not follow the timing restrictions that apply to other groups of ACV.

4. 10 year listing period

Under the 2026 Act, a successful nomination as an ACV will see that asset added to the district councils list of ACVs for 10 years, doubling the length of time by which the owner’s power to sell or dispose of their asset is curtailed.

To recap: community groups are having their ‘right-to-bid’ upgraded into a ‘right-to-buy’; the qualifying criteria for nomination as an ACV is expanding and ACV listing time is being doubled. When added up, these changes represent a robust overhaul of the current regime.

The Birketts view

The reforms are likely to be welcomed by community groups and local authorities seeking to preserve local assets; they should familiarise themselves with these new rules and be prepared to take advantage of the power being bestowed upon them to make a real lasting difference in their local areas.

Conversely, these changes are likely to present additional considerations for property owners. Landowners are therefore being encouraged to carefully consider the consequences of these new rules as the consequences are expected to be far reaching, for example:

1. The expansion of ACVs to include property that affects the economic welfare of a local area is a significant change, potentially bringing high street shops, light industrial units and takeaways within scope. Landowners who were previously free to sell their assets as they wished may now face additional considerations when seeking to dispose of those assets.

2. Development potential can often hinge on several parcels of land being brought together under a single planning permission. If part of that site falls within the new ACV regime, then landowners and developers alike will need to consider both timing implications and potential value distortion.

Whilst the changes are significant, the new regime is far from straightforward and professional advice should be sought before navigating this complex area of law. Birketts’ public law and commercial real estate specialists would be pleased to advise on the implications of the reforms and how they may affect your property interests.