Right to bid versus right to buy: new rules set to impact the sale of community assets

New community right to buy rules could delay the sale of protected buildings and land   

Pubs, theatres, community centres. These and other Assets of Community Value (ACV) in England could soon be subject to stricter laws controlling their sale and development. In this blog, the Commercial Property team at Attwaters explores how a proposed shift from a community’s right to bid to a right to buy could impact owners and developers as well as future transactions.

What is an Asset of Community Value?

According to the Localism Act 2011 (the Act), an ACV is a building or a parcel of land that

serves an important social purpose for the community, for example a library, a park or an allotment. Under the new rules, a much broader definition has been proposed to include assets that are key to a community’s ‘economic wellbeing or interests’. Some argue this could be applied to local factories or high street shops, which are already being targeted by other legislative reforms (link to vacant property blog?). An ACV is normally nominated by a voluntary or community group/body, which can include town and parish councils. Once approved, the asset is added to a register maintained by the local authority.

What are the drivers for change?

Although there are currently around 3,400 active ACV registrations, the percentage of successful community bids since the Act was introduced in 2012 has been low. The government believes the current system has ‘failed to protect valued community spaces’ and wants to give communities stronger powers to purchase the assets that are important to them. As a result, the government is proposing to replace the current right to bid regime with a right to buy instead.

What are the current right to bid rules?

When an owner advises a local authority of their intention to sell an ACV, it triggers a six-month moratorium. During this time, community and voluntary groups can make a bid to buy the asset to protect it for community use. The owner is under no obligation to accept such bids and can sell to an interested party of their choice, even at a lower price than the bid. There are some circumstances where the Act does not apply, for example if the owner makes a gift of the asset or transfers ownership to a trust.

What are the proposed changes?

Under the English Devolution and Community Empowerment Bill (the Bill), community groups would have a legal right of first refusal to purchase an ACV at a fair market price. As well as broadening the ACV definition, there are other reforms on the table that could impact the sale and development of ACVs. For example, the Bill proposes:  

• The removal of the ‘recent past’ requirement, which means historic use would be considered when assessing an ACV nomination. For example, a pub that has been closed for an extended period could still be listed as an ACV.
• Stronger rights of appeal for community groups when nominating an ACV.
• A longer moratorium period of 12 months to give community groups more time to raise funds and prepare bids.
• A new category of ACV covering sports grounds, known as Sporting Assets of Community Value, which would enjoy indefinite protection. 
• An independent valuation process to establish an asset’s current market value if necessary.

What does this mean for ACV owners?

In an impact assessment, the government admitted the new proposals would have an impact on asset owners, potentially resulting in delayed sales. As of April 2026, the Bill was still being reviewed by the House of Lords, providing owners with a small window to take evasive action before any changes are introduced.

Our Commerical Property and Planning teams can help you identify current assets and future transactions that might be affected by the new rules. We can also assist ACV owners with appeals, compensation claims and right to buy exemptions. Contact our friendly team today on 0330 221 8855 enquiries@attwaters.co.uk to find out how we can support you.