Community right to bid
The Localism Act brought in a range of new rights for communities and neighbourhood groups. Part 5 Chapter 3 of the Localism Act, along with Assets of Community Value Regulations introduced the Community Right to Bid. The right came into force in September 2012.
The Community Right to Bid gives communities the opportunity to bid to buy community assets. This includes private as well as public assets. The right enables community groups to nominate assets that they believe are of particular value to their local area to be listed by the local authority as an asset of community value.
The local authority can permit the listing if the asset’s principal use has furthered the community’s social well-being or social interests, and is likely to do so in the future. Social interests can include cultural, sporting or recreational interests. The Department for Communities and Local Government (CLG) suggest that such assets can be buildings or other facilities, and might include; a village shop, a pub, a community centre, a children's centre, allotments, a library and so on. There are a number of excluded categories, set out in Schedule 1 to the Regulations, and this includes residential property.
The local authority has 8 weeks to decide whether the asset meets the definition set out in Section 88 of the Localism Act. If the owner of the asset objects to the listing, they have the right to request that the local authority reviews the decision, and if they are still not satisfied, they can request an independent tribunal.
If the owner of a listed asset decides to sell it, they must notify the local authority, and can then not proceed for 6 weeks, allowing community groups to request that they are treated as a potential bidder. If no groups make such a request, the owner can sell the asset.
If a valid request is received, the owner may not sell the property for 6 months from the date they gave the notification to the local authority, unless they sell it to the community group. They are then free to sell the asset to anyone they choose. It should be noted that this is not the same as giving the community group the first right of refusal, it simply allows the owner to sell to the community group if they choose to.
There are then no restrictions on any further sale of the asset for 18 months from the date of notification.
Sales that do not comply with the requirements are rendered void.
A compensation scheme is available for private property owners that may suffer financially as a result of the right to bid. The scheme is administered by the local authority.
NB: In March 2016, Community Pubs Minister Marcus Jones announced a new support and finance programme to help people take control of their local pub for the benefit of the community. (Ref. Gov.uk New £3.6 million programme to help communities take control of their local pub, March 2016.)
[edit] Related articles on Designing Buildings Wiki
- Asset of community value.
- Community.
- Community group.
- Community infrastructure levy.
- Community right to build.
- Community rights.
- Local development order.
- Localism Act.
- National Planning Policy Framework.
- Neighbourhood development order.
- Neighbourhood planning.
- Planning permission.
- Protection of bowling greens.
- Right to regenerate.
- Tenant management organisation.
[edit] External references
Featured articles and news
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation which closes 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
CIOB Construction Manager of the Year 2025
Just one of the winners at the CIOB Awards 2025.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.
Construction Products Reform Green Paper and Consultation
Still time to respond as consultation closes on 21 May 2025.
Resilient façade systems for smog reduction in Shanghai
A technical approach using computer simulation and analysis of solar radiation, wind patterns, and ventilation.