The private property industry has signalled its opposition to the ‘Right to Buy’ proposals contained in the Localism Bill and has implored the government to insert “safeguards” to stop communities making vexatious claims on properties.

In its submission to the consultation on the scheme, the British Property Federation has recommended that any community group wishing to buy a community asset should have to prove its ability to raise the finance, before the local authority adds the property to its list of nominated properties.

The Community Right to Buy concept is intended to give community groups and other civil society organisations (CSOs) the power to nominate a piece of land or building to be listed with the local authority, and then be given time to prepare a bid to buy it if the owner wants to sell it. The Department for Communities and Local Government, which is sponsoring the Bill, hopes the legislation will help to save local community services from closure and also bring empty buildings back into use.

The NCVO has recommended to government that the sector should be given first right of refusal over any such property, ahead of prospective private-sector buyers.

But the response submitted by the BPF indicates that it may not be willing to accept the proposals without a fight.  It suggests that the scheme will do little to save local services such as post offices and pubs from closure, and could even be “hijacked” to stifle development and economic growth.

Liz Peace, chief executive of the BPF, said it was misleading of the government to portray the scheme as a mechanism for local communities to keep services open because communities will only be able to list the building and not the service that operates from within it.

“For example, a post office is a contractual service and while the community may be able to bid for the building, this would not guarantee the continuation of the service.  Equally, if a local pub faces closure and the community manage to purchase it, they would take ownership of the building and not the service.  They would have to take on and organise this for themselves.”

The BPF also raised concerns that “vexatious” nominations could be made in order to stifle development and regeneration.

“Given the financial impact and inconvenience to property owners that could result, the BPF is calling on the government to put in place a series of safeguards that communities must satisfy in order to successfully list a property with the local authority," said Peace.  "Such safeguards include providing proof of their ability to raise the money for the purchase.

"Including this measure will help to reduce incidence of vexatious applicatons and go some way to providing peace of mind for property owners affected."