Assets of Community Value – a sporting revolution

Amidst all the excitement of proposed changes to the National Planning Policy Framework and the recently enacted Planning and Infrastructure Act 2025, there has been relatively less furor over the English Devolution and Community Empowerment Bill (the Bill) which is currently at Committee Stage in the House of Lords. What discussion of the Bill there has been to date has generally been focused on the devolution proposals but buried within Schedule 29 of the Bill are provisions changing how assets of community value (ACVs) are to be dealt with in England.

What is an ACV?

The Bill provides that land is an ACV if in the authority’s opinion it falls within one of two limbs:

1. its actual current use furthers the economic or social wellbeing or economic or social interests of the local community and it’s realistic to think that this use will continue to do so; or
2. there was a time in the past where the use furthered these interests and it’s realistic to think there will be a time in the next five years where these interests will be furthered. 

The Bill therefore expands the current provision (as set out in the Localism Act 2011 and the Assets of Community Value (England) Regulations 2012) so as to incorporate assets that further the economic well-being and economic interests of the local community, in addition to social well-being and interests. The Explanatory Notes for the Bill do not provide any examples as to what facilities could be seen to further a community’s economic interests but arguably this could incorporate shops or possibly even banks. 

The Bill also makes it easier to demonstrate that land is an ACV under the second limb – by removing the requirement that any interests that were furthered in the past must have occurred in the recent past. 

How does land become an ACV?

Other than sports grounds (discussed below) land will be included in an authority’s ACV list if it is nominated by an eligible community group (i.e. a parish council or a voluntary or community body with a local connection) and the local authority agrees with the nomination (subject to the landowner’s right to request that the authority review their decision). 

How are sports grounds dealt with?

Whilst it is already possible under the current regime for sports facilities to be nominated as an ACV (given that social interests includes sporting interests under the current legislation) according to Government guidance fewer than 100 of the over 6,000 sports grounds in England have been nominated as an ACV. The Government has therefore decided to step in to award sports grounds greater protection through the Bill.

The Bill will require authorities to include any sports grounds that are of community value in its area on its ACV list. This means that sports grounds (and land that supports a sports ground which could extend for example to car parks) will be listed as an ACV without the need for any community nomination. 

Whilst other ACVs will be removed from the ACV list after a 5 year period, these sporting assets will remain on the list indefinitely – meaning an owner will always have to comply with the provisions (discussed below) if it wishes to sell its sports ground. 

Whilst owners do have a right to ask an authority to review its decision to list, this moves the dial considerably – by capturing all sports grounds[1] under the ACV regime. 

What is the effect of an ACV listing?

Land that is listed as an ACV can only be sold (subject to certain exceptions) if the owner complies with the steps set out in the Localism Act. The Bill expands on these steps such that the process will be as follows:  

• The owner must serve notice on the local authority that it intends to sell the ACV (the Sale Notice).
• An eligible community group can then make an expression of interest in the potential purchase of the ACV in an 8-week period from the Sale Notice. If nobody makes an expression of interest in this 8-week period, then the owner is free to sell the ACV on the open market.
• During this 8-week period the community group can offer to buy the ACV at a price that has been agreed with the owner. In order to help negotiations, the local authority must facilitate a meeting between the group and the owner.
• If the community group does not make an offer at an agreed price in this 8-week period, then the local authority must appoint a valuer to determine the market value of the ACV (the Value Price) (with the expense of the valuation to be met by the local authority).
• The community group can offer to buy the ACV for the Value Price in a 12-month period following the Sale Notice.
• If progress is not made by the community group in the 12-month period, the owner can request a review (after 16 weeks for sports grounds and after 6 months for all other facilities). The authority will then review whether the group has met certain “progress requirements” (the detail of which will be provided for in separate regulations).  If the group has not made sufficient progress then the owner is free to sell the ACV on the open market.

Crucially, if the community group offers to buy at the Value Price in the 12-month period, then the owner is prevented from selling the land other than to the community group[2]. The owner is not forced to sell to the community group – but he is prevented from making a sale otherwise. The Government has effectively therefore upgraded the community group’s right to bid (as per the current legislation) to a right of first refusal. Community groups have also been given a longer window in which to obtain funds and prepare a suitable offer – they have a 12-month period (with progress needing to be made in the initial 6 months) whereas the existing legislation only restricts sales for 6 months in total. The Bill therefore greatly shifts the ACV regime in favor of community groups in an effort to keep community assets in community ownership. However, this increases the burden (and costs) on authorities – they will need to review any sports grounds they own, engage in the negotiation process to facilitate meetings, they will need to review the progress of community groups, and will have to pay and instruct valuers.

Owners of ACVs should be alive to these changes and keep an eye out for any regulations that may follow (for example in relation to compensation and the determination of the Value Price given the Bill does not set out any method of challenge for an owner). In particular, owners of land that impacts the local economy should be aware that their land may in the future be subject to a nomination by a local community (emboldened by the new provisions) and consider whether any counter arguments can be made to object to a potential listing.  

The Bill is not yet in force but it is a clear sign from the Government that it intends for more local facilities to remain locally owned – whether or not that is feasible (a community group still needs to be able to fund any purchase) remains to be seen.