The ACV regime was introduced by Part 5 Chapter 3 of the Localism Act 2011 and came into force in England on 21 September 2012. It was intended to give communities a genuine chance to buy valued local assets — pubs, libraries, village halls, sports grounds — before they are sold to developers or converted to non-community uses. However, from a commercial landlord's perspective, the regime creates a significant uncertainty: an ACV listing can be made at any time, without the owner's consent, and the listing triggers a moratorium that can delay a planned disposal for up to six months. The ACV regime does not give community groups a right of first refusal, a right to buy at a specified price, or a right to veto a disposal — but the moratorium can disrupt planned transactions, increase legal costs, and affect lender confidence. Understanding how to navigate the regime, challenge a listing, and plan disposals to minimise moratorium risk is increasingly important for commercial property landlords in England.
What is an ACV Listing and Which Properties Can Be Listed?
Under the Localism Act 2011, local authorities in England are required to maintain a list of Assets of Community Value. A property can be listed if the local authority determines that: (i) the current or recent use of the building or land furthers the social wellbeing or social interests of the local community; and (ii) it is realistic to think that there can be a non-ancillary use of the building or land which will further (whether or not in the same way) the social wellbeing or social interests of the local community. The test is deliberately wide: 'social interests' includes cultural, recreational, and sporting interests. Properties that have been listed include: public houses (the largest category of ACV listings); village halls and community centres; libraries and reading rooms; theatres and cinemas; sports grounds, pitches, and golf courses; allotments; local museums and galleries. The listing can be made on the nomination of: (i) a voluntary or community body with a local connection; (ii) a parish council in respect of any land in their area; (iii) a neighbourhood forum with an area that includes the land. The owner is notified and has the right to make representations before the decision is made, but the authority does not require the owner's consent — the listing can be made despite the owner's objection. Once listed, the property remains on the list for five years. The owner can apply for review and, if unsuccessful, appeal to the First-tier Tribunal (General Regulatory Chamber). Wales has a separate system under the Well-being of Future Generations (Wales) Act 2015.
- ACV listing criteria: (i) current/recent use furthers local social wellbeing or social interests; and (ii) realistic prospect of continued community use — both must be satisfied
- Common ACV listings: public houses (largest category — over 1,700 listed pubs in England); village halls; libraries; sports grounds; community theatres; allotments; local parks
- Who can nominate: voluntary/community bodies with a local connection; parish councils; neighbourhood forums — no requirement for owner consent
- Owner notification: owner is notified before listing and can make representations; listing can proceed despite owner's objection; owner can request an internal review and appeal to First-tier Tribunal (GRC)
- Duration: five years on the list; can be re-nominated and re-listed after expiry; the owner can apply for de-listing if circumstances change
The Six-Month Moratorium — How It Works and What It Stops
The ACV moratorium is triggered when the owner of a listed ACV notifies the local authority of an 'intended disposal' — a sale of the freehold, assignment of the freehold, grant of a lease for more than 25 years, or other relevant disposal. Once the moratorium is triggered: (i) the owner serves a Moratorium Trigger Notice on the local authority; (ii) the local authority publicises the intended disposal; (iii) community groups have six weeks from the notification to register an interest in bidding ('Community Interest in Bidding' notice); (iv) if a community interest notice is lodged, the full moratorium period of six months begins (from the date the owner gave notice to the local authority); (v) during the six months, the owner may negotiate and agree terms with any party, including community groups and commercial buyers — but cannot complete a disposal to a non-community purchaser; (vi) after six months, the owner is free to sell to whoever they choose, including a commercial buyer. The moratorium does not: give community groups a right of first refusal at a fixed price; prevent the owner from marketing the property to all parties simultaneously; give community groups a right to match any offer; or prevent the owner from selling to any community organisation that registers an interest. Critical point: the six-month period runs from the date of the owner's original notice to the local authority — not from the date of the community interest notice. If no community interest notice is lodged within six weeks, the owner can complete the disposal immediately. The moratorium resets if the owner does not complete the disposal within 18 months of the original notice.
- Trigger: owner must notify the local authority of an 'intended disposal' (freehold sale; 25+ year lease) before completing — even if exchange has already occurred in contract form
- Six-week window: community groups have six weeks to register a Community Interest in Bidding (CIB) notice; if no CIB is received, the owner can proceed immediately
- Six-month moratorium: if a CIB is registered, the full six months begins from the date of the owner's original notice; during this period the owner can negotiate with all parties but cannot complete to a non-community purchaser
- No right to match: community groups have no statutory right to match the best commercial offer or buy at a set price — they must compete in the open market during the six-month period
- 18-month reset: if the owner does not complete within 18 months, the moratorium protection lapses and a new notification (and potentially new six-month moratorium) is required
Exempt Disposals — Transactions Not Caught by the Moratorium
Not all disposals of ACV-listed properties trigger the moratorium. The Assets of Community Value (England) Regulations 2012 set out a list of exempt disposals including: (i) disposals by will (on death); (ii) gifts (disposals without consideration); (iii) disposals between spouses, civil partners, and immediate family members; (iv) disposals as part of insolvency proceedings; (v) disposals by a mortgagee exercising a power of sale; (vi) disposals to a community interest company (CIC), community benefit society, or registered charity — i.e. sales to a community purchaser are exempt; (vii) grants of leases for 25 years or less; (viii) disposals as part of a company share sale (where the owner is a company and the shares rather than the land are sold). The share sale exemption is particularly significant for commercial landlords who hold properties through SPVs (Special Purpose Vehicles): a sale of the shares in the SPV that owns the listed property does not trigger the ACV moratorium, because the disposal is of shares, not of the land itself. This is a legitimate transaction structure available to all landowners — but the Government has periodically indicated it may legislate to close the share sale exemption. Landlords using this route should take legal advice on SDLT implications and lender consent requirements for share sales.
- Leases under 25 years: not a triggering disposal; grants of commercial leases for terms of 25 years or less do not trigger the moratorium — significant for landlords who can let rather than sell
- Share sale exemption: where the ACV-listed property is owned by a company, a sale of the company's shares (rather than the land) does not trigger the moratorium; SDLT implications differ
- Mortgagee sale: a lender exercising a power of sale is exempt — the moratorium does not prevent a mortgage lender from recovering its security
- Insolvency: disposals in insolvency proceedings (administration, liquidation) are exempt — protects secured creditors and insolvency practitioners
- Community purchaser: disposals to a CIC, community benefit society, or charity are exempt — the moratorium exists to create time to find a community buyer, not to prevent one from completing
Challenging a Listing and Compensation
A landowner whose property is listed as an ACV has two routes to challenge the listing: (i) internal review by the local authority — the local authority must carry out a review if requested within 8 weeks of the listing decision; the review must be by a person not involved in the original decision; (ii) appeal to the First-tier Tribunal (General Regulatory Chamber) — if the internal review upholds the listing, the owner can appeal on legal grounds (the listing fails to satisfy the Localism Act criteria) within 28 days of the review decision. Grounds for challenge include: no current or recent community use; no realistic prospect of continued community use; the property is not 'land in England'; the nominating body does not satisfy the eligibility criteria. Compensation: where an ACV listing causes the owner actual loss (because a planned sale falls through during the moratorium; or the owner incurs additional costs as a result of the listing or moratorium), the owner can claim compensation from the local authority under the Assets of Community Value (England) Regulations 2012. Compensation covers: abortive costs of a transaction that failed due to the moratorium; holding costs during the moratorium period; the difference in market value if the moratorium caused the value to fall. Compensation is not payable simply because the property is listed — it requires actual quantifiable loss caused by the moratorium or listing process. SDLT: there is no SDLT treatment specific to ACV disposals; the disposal is treated as any other land transaction.
- Internal review: request within 8 weeks of the listing decision; carried out by a different officer; can result in de-listing if the criteria are not met
- First-tier Tribunal appeal: within 28 days of the review decision; challenges the legal basis of the listing; further appeal to Upper Tribunal on a point of law
- Compensation grounds: actual loss caused by the moratorium or the listing process — abortive transaction costs; holding costs; market value reduction; not available simply because the property is listed
- Challenge strategy: challenge both the nomination (eligibility of the nominator; adequacy of the evidence) and the listing decision (whether the criteria are met) at the earliest stage
- Wales: the ACV regime in England does not apply in Wales; Wales has separate community asset transfer powers under the Well-being of Future Generations (Wales) Act 2015 and Community Asset Transfer regulations
Frequently asked questions
What is an Asset of Community Value (ACV)?+
An Asset of Community Value is land or a building listed by a local authority under Part 5 Chapter 3 of the Localism Act 2011 because its current or recent use furthers the social wellbeing of the local community and there is a realistic prospect of continued community use. Public houses are the most commonly listed properties. The listing gives community groups a right to register an interest in bidding during a six-month moratorium if the owner decides to sell.
How long does the ACV moratorium last?+
If a community group registers a Community Interest in Bidding (CIB) notice within six weeks of the owner's disposal notification, a full six-month moratorium begins (running from the date of the owner's original notice). During this period, the owner can negotiate with all parties including commercial buyers, but cannot complete a disposal to a non-community purchaser. After six months, the owner is free to sell to anyone.
Does an ACV listing prevent me from selling my property?+
No — an ACV listing does not give community groups a veto, a right of first refusal, or a right to buy at a set price. It only creates a moratorium period (up to six months) during which community groups can prepare a bid. After six months, the owner can sell to a commercial buyer on the open market. The moratorium can be avoided entirely if no community group registers a CIB notice within the six-week window.
Can I avoid the ACV moratorium by selling shares instead of the land?+
A sale of shares in a company that owns an ACV-listed property does not trigger the ACV moratorium, because the disposal is of shares (a company law transaction), not of the land itself. This is a legitimate transaction structure, but SDLT is calculated differently on a share sale, and you will need lender consent and a disclosure exercise. The Government has periodically discussed closing this exemption — take current legal advice before proceeding.
Can I claim compensation if my property is listed as an ACV?+
Compensation is available from the local authority where an ACV listing or moratorium causes the owner actual quantifiable loss — for example, abortive transaction costs where a sale falls through during the moratorium, or holding costs incurred during the moratorium period. Compensation is not payable simply because the property is listed; actual loss must be demonstrated.