Bond Pearce

A significant new provision in the Localism Act will be introduced in April.  Disposal of Assets of Community Value will be regulated.  This will have an impact on the ability to freely dispose of these assets albeit what assets will be caught and the detail of the process remains to be settled.  The Department has advised that Regulations will be made this April. The 'Social wellbeing' test and all that potentially it might cover from cricket grounds, to employment uses in rural areas, is still to be clarified. 

Jonathan Bower, partner at Bond Pearce comments:

"Very little information on the final enforcement and compensation provisions has been made available.  Owners of land or buildings which may be listed as community assets may therefore find themselves asking the question whether to act now and dispose before the rules come into force.  The government has been promoting a deregulation of industries.  This increased regulation will lead to delay, increased costs and aggravation for owners seeking to dispose of this type of asset on the 'open market'. 

The given justification is to seek to protect social well being.  One might argue that this is justified in the public sector where restrictions on disposals are not a new concept.  However, restricting disposals in this way which includes private sector assets prevents the operation of the free market.  It might lead one to question whether this is helpful in the current economic climate."

Please see our full report on Assets of Community Value for more information.