The Community Right to Bid, also known as Assets of Community Value, gives people the chance to bid to buy and take over the running of assets that are considered to be of value to the local community.
Voluntary and community organisations can nominate both privately and publicly owned assets to be included on a list of assets of community value. This list is managed by the Council.
If a landowner wants to sell a registered property, they must tell the Council. If a community group wants to buy the asset, they can trigger a 6 month moratorium to give them a chance to prepare a bid for it. During this period, the owner cannot sell their property on the open market.
This gives community groups an increased chance to save much loved shops, pubs or other local facilities by developing a proposal and raising the required capital.
At the end of the six month period, the owner is free to sell the asset to whoever they wish and at any price.
The landowner is not under any obligation to sell to the community group.
Who can nominate an asset of community value?
Neither the Council nor individuals can make nominations. These must be made by eligible voluntary and community organisations.
These organisations must:
Have a local connection to the property they wish to nominate; this means that its activities are wholly or partly concerned with the administrative area of Erewash Borough Council or a neighbouring local authority.
Be one or more of the following:
an unincorporated community group with at least 21 members who are registered to vote in the Erewash Borough Council area
a parish council
an industrial and provident society
a local neighbourhood forum
a company limited by guarantee or a community interest company.
See the guidance notes for a full list of criteria.
How to nominate an asset of community value?
A nomination has to include certain information. To ensure that you comply with the requirements, please use the Nomination Form provided.
The nomination must include:
The address of the property
Details of the owner and current occupants
The extent of the site and its proposed boundaries
Why you feel it is an asset of community value.
You must also provide evidence of your eligibility to nominate.
What counts as an ‘asset of community value’?
A building or piece of land is deemed to have community value if:
The use of the land or building currently, or in the recent past, furthers the social well-being or cultural, recreational or sporting interests of the local community
This use (as described above) of the land or building will continue to further the social well-being or interests of the local community
The use of the building or land must not be deemed ‘ancillary’, ie of secondary purpose. This means that the use of the land or building to further social well-being or interests of the community must be its principal use.
What happens following nomination?
The Council has to decide whether or not to list the asset, within eight weeks following the nomination. Once we have received the completed form, we will check the technical issues such as the eligibility of the nomination and the organisation making the nomination, completeness of the information supplied, and the fact that the asset is not in an excluded category.
Decisions as to whether the nominated assets are of community value will be made by the Director for Resources and the Lead Member for Planning and Regeneration.
Assets that are considered to be of community value will then be added to the ‘List of Assets of Community Value’. Assets will remain on the list for five years and a land charge will be registered against the property. When the five years have expired, an eligible community organisation can submit a new nomination.
The Council will take all practicable steps to notify the owner and lawful occupants that it is considering listing the property. We will also notify these people of the outcome of the nomination.
The organisation which originally nominated the asset will be notified of the outcome, together with reasons if the application is unsuccessful. They will also be notified if the asset is subsequently removed from the list, following a review of the decision.
If the nominated asset is not considered to be an asset of community value, or if the nomination was ineligible, we will provide an explanation as to why it was unsuccessful to the organisation which made the nomination. In such circumstances, the property will be added to the “Unsuccessful Nominations List” and will remain on the list for five years.
If we decide to list a property, the property owner can ask for a review which will be carried out by the Chief Executive and the Leader of the Council. The owner has a further right of appeal to the First Tier Tribunal. Further guidance will be provided in the letter to the property owner.
Nominators are not able to appeal the decision made in respect of their nomination. However, they can make a complaint through the council's complaint procedure if they feel we have not followed the correct procedure.
List of assets of community value
Viewing the lists
The Assets of Community Value Lists contains the details of the successful and unsuccessful nominations. You will also be able to request one free copy of the list using the details in the contact information section of this page.
What happens when an asset is listed?
The owner of the property must advise us when they intend to sell the property and we will include details on our published lists and we will inform the nominator. If no community interest group notifies the Council within six weeks that it wishes to bid, the owner is free to sell their property as they see fit.
If an eligible community interest group notifies the Council within six weeks that it wishes to bid for the property, it will have up to six months in which to prepare its bid.
Bids by community interest groups
Who can bid?
Only community interest groups that meet the Government's criteria can bid; not all groups that are eligible to nominate are also eligible to bid.
Community interest groups should have a local connection with the asset and be one or more of the following: a parish council, a registered charity, a community interest company, a company limited by guarantee or an industrial and provident society.
Full details of the eligibility criteria can be found in the Guidance note and in the Localism Act 2011 and the Regulations.
If more than one community interest group is interested in purchasing the property, we would encourage the groups to work together.
How do community groups bid?
Within six weeks from the council notifying the community that an owner wishes to sell their listed property, an eligible community interest group would need to let the Council know in writing that it wishes to bid. This then opens a six month period (from the day the owner notified the Council) in which to prepare a bid; this is known as the moratorium period.
The Council will acknowledge the request to bid and will notify the owner that the moratorium has been triggered.
The status of the asset on the list of successful nominations will be changed to reflect that it is for sale and that the moratorium has been triggered.
Funded by the Department for Communities, Locality is a leading network for community-led organisations, bringing together all strands of the partner organisations involved in the Community Rights support service. They have created a website called My Community Rights.
For further information, please contact us by either:
Phone: 0115 907 2244 ext 3621
Post: Head of Law and Corporate Governance, Erewash Borough Council, Town Hall, Wharncliffe Road, Ilkeston DE7 5RP.