Assets of Community Value: the Impact of the English Devolution and Community Empowerment Bill

This insight follows on from a previously written insight by Legal Director, Peter Hall on the English Devolution and Community Empowerment Bill as well as Trainee Solicitor Bella Bodmer’s article on The Potential Ban on Upwards Only Rent Reviews.

How does the law currently define Assets of Community Value?

Since 2012, community groups have been able to nominate land that has a social purpose for the community as an Asset of Community Value (‘ACV’). Local authorities then decide if an asset meets ACV status, and if so, place it on their list of ACVs for five years. 

The statutory definition of an ACV is contained in Part 5, Chapter 3 of the Localism Act 2011 and is governed by The Assets of Community Value (England) Regulations 2021. 

ACVs are currently defined as follows:

• an actual current use of the building or other land that is not an ancillary use furthers the social wellbeing or social interests of the local community, and
• it is realistic to think that there can continue to be non-ancillary use of the building or other land which will further (whether or not in the same way) the social wellbeing or social interests of the local community.

If the asset does not satisfy the above criteria, it may still be classed as an ACV if in the opinion of the local authority:

• there is a time in the recent past when an actual use of the building or other land that was not an ancillary use furthered the social wellbeing or interests of the local community, and
• it is realistic to think that there is a time in the next five years when there could be non-ancillary use of the building or other land that would further (whether or not in the same way as before) the social wellbeing or social interests of the local community.

What is the status of the Bill?

On 10 July 2025, the Ministry of Housing Communities and Local Government introduced the Bill into Parliament. Since its initial introduction, Parliament have published updated versions of the Bill, Explanatory Notes and an Impact Assessment, with Governmental guidance also available. The Bill was last amended by the House of Lords on 27 November 2025, with a second reading listed for 8 December 2025. 

Given the status of the Bill, there is no fixed commencement date for its implementation. For now, following the progress of the Bill through the remaining parliamentary stages and watching out for any further amendments during this process, is key. 

What are the main proposed changes to ACVs in the Bill?

• Firstly, the Bill widens the statutory definition of ACVs from use that solely furthers social wellbeing and interests to include economic wellbeing and interests. This broadens the scope of what assets will be listed as ACVs following the Bill’s implementation.
• The Bill removes the ‘recent past’ requirement in the criteria set out above by replacing it with ‘a time at any point in the past.’ This opens doors for assets which had historical community value to gain ACV status, even if this has not been the case for decades.
• The Bill replaces the previous ‘right to bid’ with a stronger statutory ‘community right to buy’. This gives community groups a statutory right to first refusal when an ASV is put up for sale.
• The Bill extends the moratorium period for community groups from six months to twelve months, freezing the sale and allowing more time for communities to put together funding. At six months, asset owners can ask the relevant local authority to review if the community is making ‘sufficient progress’ and if not, terminate the right to buy at this six-month point.
• Local sport facilities and certain supporting land will automatically be given indefinite ACV status, removing the need for communities to apply for this.
• Local authorities have a duty to publish its list of ACVs and its list of unsuccessful community nominations. Community groups will also gain a right to appeal where a decision has been made to not grant ACV status to an asset, with specific appeal routes set out in the Bill.
• Finally, where there is disagreement between owners and community groups regarding the purchase price of an ACV during the negotiation period, an independent valuer will set a price based on the market value.

Will the proposed changes to ACVs have the desired effect?

The Government believes that the current system for ACVs often fails to protect valued community spaces, arguing that the statutory definition is too narrow, paired with unfeasible time limits for communities. 

The proposed changes to ACVs aim to strengthen community leverage by making 'local ownership of pubs, shops and social hubs easier'. By broadening the scope of ACVs and expanding the moratorium period of sale, the Bill seeks to provide greater protection to assets which communities regard as ‘integral’ and thus reduces the opportunities to redevelop those assets.

Community organisations like Locality welcome the proposed changes, with hope that the Bill will increase the number of community owned ACVs from the current 2% figure commonly referred to in research. 

However, it is important to assess how likely this will be in practice on the Bill’s implementation. The Bill’s Impact Assessment in June 2025 suggests that the number of ACV listings that will become community owned under the new regime is likely to remain a minority. Legal and political commentary also acknowledges this, highlighting how while there will be a right to first refusal and a potential 12-month freeze on sales, communities will still need to build community interest and secure funding within this period. As such, while the Bill undoubtedly strengthens community power on paper, in practice, communities will continue to face barriers. 

The right of asset owners to review whether ‘sufficient progress’ is being made by communities at the six-month mark and potentially end the moratorium period early serves to protect owner rights where community buyers have no realistic prospect of purchasing the asset. This provision, paired with the practical barriers of having experience, and securing community interest and funding, suggest that in many cases the freeze on sale is likely to remain at the current six-month period. 

The Bill undoubtedly brings uncertainty for asset owners and the market, particularly for those who own sporting facilities or assets with economic interest that previously would not have qualified for ACV status but will fall within scope under the new provisions. What is clear from the Governmental guidance and Impact Assessment published by Parliament is that the main effect on landlords is likely to be an increase in assets gaining ACV status, slower sale processes, and potentially greater valuation disputes.

What should you do as asset owners if the proposed changes do come into force?

It is important to note that the proposed changes to ACVs remain subject to the final stages of the Bill’s journey through Parliament and will not become law until it is granted Royal Assent. If the Bill passes, the principal concern for asset owners while we await a replacement of the 2012 regulations should be preparedness and are as follows:

• Assess which of your assets may fall within the expanded ACV regime in the Bill.
• Factor in a potential twelve-month moratorium before putting an ACV on sale.
• Use the six-month progress review during the moratorium.
• Maintain your landlord obligations throughout the moratorium.

The current Bill can be accessed at English Devolution and Community Empowerment Bill - Parliamentary Bills - UK Parliament with ACVs found in schedule 29 at the time of writing.