Localism Bill measures on community assets "could lead to challenges"

Provisions in the Localism Bill requiring councils to draw up a list of assets which are of community value could lead to challenges, particularly where land is in private sector ownership, it has been claimed.

Under the Bill local organisations such as parish councils will be able to nominate assets for inclusion on the list.

Steven Smith, a partner at Eversheds, said: “The provisions give community organisations an opportunity to bid to acquire assets on the list, if and when a sale of those assets is proposed (but without any duty to sell), the intention being to potentially give those organisations the opportunity to deliver existing or new services using those assets, for the benefit of the community.

“If it's proposed to add land to a list, the Bill does make provision for the owner of that land to be notified, and if land is in private sector ownership you'd expect the owners in many cases to seek to challenge those proposals.”

Smith added that if an owner of land which has been included in such a list wants to sell it, or let it under a long lease, the owner will need to notify the local authority and will not be able to sell or lease the land until a moratorium period has expired. This moratorium is intended to give the community organisation a chance to bid to buy the land.

“Under the Bill the question of what land could potentially be included in a list, and how long a sale or lease of that land could be delayed under the provisions, depends on regulations which the Secretary of State will make,” the Eversheds lawyer said.

“But certainly at the moment the types of land which might be regarded as of community value could be potentially very wide-ranging: depending on what those regulations say, at the moment potentially land held by any public body (including the (significant) assets currently owned by the outgoing Regional Development Agencies, where these could benefit a local community) could be put onto such a list."