The Localism Act 2011 requires an owner who has a property which is listed on the local authority's list of assets of community value to give notification of disposal. This will kick in an interim moritorium period of disposal, ie six weeks in which a community group may declare an interest in exercising their right to bid for the property. If one does so a full moratorium period on the disposal arises, namel six months.
It follows that the stakeholders will all have to be alert to the impact of such a moratorium, namely:
- the owner should be aware that the property is on the list and be concerned that the appropriate "notification of disposal" (see section 96) is made;
- any owner's estate agent should take into account the timing of the various periods given in the chapter, eg "full moratorium period", "interim moratorium period" and "protected period";
- prospective buyers (both community buyers or private buyers) will need to understand the nature and timings of any possible delays;
- any community interest group (see section 95(6)) wanting the property will need to comply with the procedures;
- the local authority (see section 106 (1), (2), (3), and (4)) will need to be geared up to give effect to the procedures.
Once the Regulations are published (probably in a few months) the full gamut of the legislation will begin to bear!
A point to bear in mind: where the vendor has a "going concern", eg as a branch in a bank and decides to close the bank branch, it may be difficult afterwards to maintain or claim the "community value" in the empty property. The issue is that the "community value" may lie in the continuation of the use, in this case banking: it is not in the property per se.
The references to sections are to those in the Localism Act 2011 (November 2011).
The actions required to obtain a compulsory purchase order need to be carefully planned and executed by the "stakeholders". The initiators are likely to be a small group of local residents who want to see a threatened local asset of community value (s 88(1)(a)).
- supportive local residents who might form themselves into a community group - to contribute ideas and raise funds for the project's immediate progression - they may want to make a community nomination (see s. 109(2) (a) and (b)) that the asset goes on the list;
- the relevant local authority - to be persuaded to make a CPO for what must be a justifiable community scheme;
- the local planning authority - to be consulted and may ultimately decide on the planning merits of the proposal;
- the owner (see s.107)and any occupiers of the property - (assumed for the purposes of this post to be opposed to the project); and,
- immediate neighbours who may be opposed to the project on amenity or other grounds.
Once formed the community group will need to make the case for project - particularly to the CPO-ing body. The main pointers on this score have been outlined by ministerial advice to the local authorities. No doubt further detail will emerge. For the purposes of this post the following is an attempted "interpretation":
- the nature of the worthwhileness or value of the project to the local community - the groups or groups of residents or visitors it will serve, the extent that life in the community becomes more sustainable....;
- the perceived threat to the asset - dereliction to the fabric of the building leading to its loss, retirement of the business owner, inappropriate development...;
- the future project in terms of its purpose, usage, management, and business (perhaps including its restoration, business development plan, funding)....;
- planning issues - the sustainability of the project for the future of the community, impact on neighbours and its amelioration....; and
- financing of the acquisition - local authority financing (if any), community groups financing etc...
