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Community Right to Bid

​Part 5 Chapter 3 of the Localism Act (2011) details regulations for Asset of Community Value and sets out the Community Right to Bid. 

The Right came into force on 21 September 2012 and its purpose is to give communities a right to identify a property that is believed to be of value to their social interests or social wellbeing and gives them a fair chance to make a bid to buy the property on the open market if the property owner decides to sell.  Currently only eligible community groups, local parish councils or local neighbourhood planning forums and charities can nominate.

Making a nomination

It is important that your community group is eligible to nominate, you can only do this if you answer yes to the two questions below:

  • Do you have a local connection to the property you are wishing to nominate? and;
  • Are you an unincorporated community group with at least 21 members who are registered to vote in the Leeds area, a parish council, charity, industrial & provident society, local neighbourhood forum, company limited by guarantee or community interest company?

To nominate you must inform us of the address of the property, details of the owner, the extent of the site and why you feel it is an asset of community value.  You must also provide evidence of your eligibility to nominate. 

To assist you we have created a nomination form which you can download from the documents section and email it to righttobid@leeds.gov.uk.  Alternatively, you may send your nomination by post to Community Right to Bid, Asset Management, 2 Rossington Street, Leeds, LS2 8HD.

Further guidance on completing the nomination form can be obtained from the guidance document.

 

What we will do next

Once we have received the completed form, we will consider and check the eligibility of the nomination and if we feel the property does have community value it will be added to the ‘List of Assets of Community Value’.  Assets will remain on the list for five years and a land charge will be registered against the property.  We aim to assess nominations within eight weeks of receipt.

You will be advised that the property has been listed and the date in five years time when it will be removed.  When the five years have expired you can submit a new nomination.

If we decide to list a property the property owner can ask for a review and there will be a process for an appeal to an independent body.  Further guidance will be provided in the letter to the property owner.

We will notify the nominee should the nomination be ineligible and provide an explanation as to why it was unsuccessful.  In such circumstances the property will be added to the list of ‘Land Nominated by Unsuccessful Community Nominations’ and will remain on the list for five years.

Nominees are not able to appeal the decision made in respect of the property however, a complaint can be made, if you feel we have not followed the correct procedure, through the council's complaint procedure.

Viewing nominated properties

You are able to view properties that have been successfully listed on the 'List of Assets of Community Value' and properties that have not been successful on the 'List of Land Nominated by Unsuccessful Community Nominations' available in the documents section.  


Making a bid

It is important to note that not all groups mentioned under 'making a nomination' above are eligible to place a bid.  All groups can nominate but only unincorporated groups cannot bid as they unable to legally own property.

The owner of the property must advise us when they intend to sell the property and we will publicise this on our website as well as informing the nominator. 

If you want to make a bid you must inform us within six weeks of us telling you the property is available to purchase.  You will then have six months to put together the bid (please note - this is not from when you inform us but six months from when the owner advises us of their intention to sell (this is known as the moratorium period).  If there is more than one community group interested in purchasing the property we would encourage the groups to work together. 

At any point before the end of the six months you may enter into negotiations with the property owner providing the owner is willing to do this.  We would ask that we are kept informed of developments.

At the end of the moratorium period, if you have successfully put a bid together, the owner will have the option to either accept your bid or sell the property freely on the open market.   

For details about the definition of asset of community value, sales outside the Act and land owner compensation please see the freqently asked question.

Further information can be found on the links on this page.

Frequently asked questions

I am a property owner, am I entitled to any compensation?

As the property owner you may be entitled to claim compensation for loss or expenses incurred as a direct result of complying with the Act.

Your claim must be made in writing, along with supporting evidence, to email address righttobid@leed.gov.uk or postal address Community Right to Bid, Asset Management, 2 Rossington Street, Leeds, LS2 8HD. 

Claims must be made within 13 weeks after the loss or expense has been incurred.  Leeds City Council reserve the right to value the property to compare valuations.

If you require further information please contact us on 0113 2243406.

Sales outside of the Act

There are some circumstances where the property owner does not need to comply with the Act, these are:

  • Disposing the property in the form of a gift.
  • Disposal of a property containing a business which uses the property and it is a going concern.
  • Disposal within a family or a partnership or between trustees or a trust or between companies in a group.
  • Disposal in the execution of a will or arising from various legal proceedings.
  • Disposal of a property that is part of a larger estate, part of which is not listed, but where the whole estate is owned by the same person and is a single lot of land.

What is the definition of an asset of community value?

The definition is:

A building or land is deemed to be of community value if, in the opinion of the council:

  • A current main use of the building or land furthers the social interests or social wellbeing of the local community, and it is realistic to think that there can continue to be a main use of the building or land which will further the social interests or social wellbeing of the local community, although not necessarily in the same way, or;
  • A main use of the building or land in the recent past furthered the social interests or social wellbeing of the local community and it is realistic to think that within five years the building or land can brought back into use that furthers the social interest or wellbeing of the local community, whether or not in the same way as before.

What is the protected period?

If the land owner does not dispose of the freehold or grant a lease of 25 years or more within 18 months of the date we were informed of their intention to dispose, and the asset is still listed, then the process must start again. 

As such the land owner may not dispose of the property without first informing us of their intention to dispose and the protected periods of time will apply again.