Assets of Community Value – a sporting revolution

Amidst all the excitement of proposed changes to the planning system, including proposed updates to the National Planning Policy Framework and the recently enacted Planning and Infrastructure Act 2025, there has been less furore over the English Devolution and Community Empowerment Bill which is currently at the Report 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 of community value 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 proposes to expand 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 of community value 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?

We discuss below the proposed changes to the over-arching ACV regime, but firstly it is worth noting that sports grounds are dealt with as a new category of ACV.

Whilst it is already possible under the current regime for sports facilities to be nominated as an ACV (given that social interests include 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.

Once the Bill is enacted, land of community value would be a sporting ACV if in the opinion of the authority it is a sports ground, as defined in Section 17 of Safety of Sports Grounds Act 1975 as “any place where sports or other competitive activities take place in the open air and where accommodation has been provided for spectators, consisting of artificial structures or of natural structures artificially modified for the purpose”.

The Bill also states that a building or land is of community value if one of its actual current uses is providing support for the use of other land as a sporting ACV – the Explanatory Notes of the Bill anticipate that this could extend for example to car parks. This broadens the scope for what can be included on an authority’s list as an ACV.

The Bill places a greater administrative burden on authorities when it comes to sporting ACVs:

• An authority’s list of ACVs must specifically identify sporting ACVs and those assets supporting sporting ACVs.
• Each time a new ACV listing is accepted the authority must consider whether the land in question qualifies as a sporting ACV and, if so, it must categorize the land accordingly.
• There is also a positive obligation on authorities to identify sporting ACVs. Within the first six months of the bill coming into force, an authority must consider whether any land in its area is land of community value and a sporting ACV.  If so, it must include the land within its list, categorized accordingly.
• Every five years the authority must again consider whether any land in its area is land of community value and a sporting ACV, and list it accordingly.

This means that sports grounds may be listed as an ACV without the need for any community nomination.

Whilst other ACVs will be removed from an authority’s ACV list after a 5-year period, these sporting ACVs (and assets supporting sporting ACVs) 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 and/or supporting land.  Whilst owners do have a right to ask an authority to review its decision to list an asset as a sporting ACV, this moves the dial considerably – by capturing all sports grounds 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 extends the existing rights of communities such that the revised process will be as follows:  

• The owner must serve notice on the local authority that it intends to sell the ACV and the authority must subsequently update its list of ACVs that notice has been received.
• An eligible community group can then make an expression of interest in the potential purchase of the ACV, within an 8-week period from the updating of the list. 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.
• If a community group makes an expression of interest, the authority must notify the owner. From the date of notice to the owner, there is then a further 8-week negotiation period during which the community group can offer to buy the ACV at a price that has been agreed with the owner. In order to help negotiations following an initial expression of interest, the local authority must facilitate a meeting between the group and the owner – the idea being that an expression of interest is made, then a price is negotiated, and then a formal offer is made.
• If the community group has not made an offer to buy at a price agreed with the owner by the end of the 8-week negotiation 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) – this is in order to ensure a fair price is agreed between the parties.
• The community group can offer to buy the ACV for the Value Price at any time during the remainder of the 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 (but only after 16 weeks for sports grounds that can accommodate over 10,000 people, 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 at any point. The owner is not forced to sell to the community group – but would be prevented from making a sale otherwise. The Government proposes therefore to effectively upgrade the community group’s right to bid (as per the current legislation) to a right of first refusal. Community groups will also be given a longer window in which to obtain funds and prepare a suitable offer – they will have a 12-month period (with progress needing to be made in the initial 16 weeks / 6 months depending on the type of ACV) 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.

Once in force, the changes will increase the burden (and costs of compliance) on authorities – they will need to review any sports grounds in their area, engage in the negotiation process to facilitate meetings, review on request the progress of community groups in making offers, and they will have to instruct and pay valuers.

Authorities should therefore be alive to the changes in the Bill and keep an eye out for any regulations that may follow. Regulations may address matters such as compensation, the process for determination of the Value Price (the Bill does not set out any method of challenge for an owner) and the identification of supporting sporting assets, which are not explicitly defined in the Bill. Authorities should also be aware that assets in their area which impact the local economy may in the future be subject to a nomination by a local community, as facilitated by the new provisions.

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. However, the extent to which the changes move the dial, given that a community group still needs to be able to fund any purchase, remains to be seen.   

Sadie Pitman is an Associate in the Planning, Infrastructure & Environment team at Charles Russell Speechlys.