Right to Buy provision should not exclude residential property, says NCVO

05 May 2011 News

Residential property should not automatically be excluded from being listed as an asset of community value under the Community Right to Buy scheme, the NCVO has argued.

Residential property should not automatically be excluded from being listed as an asset of community value under the Community Right to Buy scheme, the NCVO has argued.

The NCVO made the claim in its submission to the government consultation on the Community Right to Buy concept which is contained within the Localism Bill.

The Right to Buy provision is intended to allow civil society organisations (CSOs) to express an interest in purchasing a piece or land or building if it has been deemed by the local authority to be of “community value” and if the owner, who may be private or public, decides to sell it.

Under the current proposals, certain assets may be excluded from the Right to Buy provision at the local authority’s discretion.  But the NCVO contended that local authorities must only exclude assets after full and transparent consultation with the local community.

It said that residential property should not automatically be excluded from being listed as an asset of community value, so as to allow maximum flexibility.  The NCVO said: “Blanket exclusions of categories of properties should be avoided as far as possible.  In some cases it will be appropriate to exclude categories of properties, including residential, but this decision should be taken locally as a result of consultation.”

Potential future use of property

It also recommended that communities should be able to nominate an asset to purchase based on its current use and also on its potential future use, and that this power should not reside solely with local government.

The NCVO said: “If the rationale for the Bill in general is to put more power into the hands of people and communities, they should have the ability to look at an asset in their locality and, where appropriate, be able to propose to the local authority that a different use of that building or land could be of benefit to the community.”

Restricting assets to their current use would impose a heavy opportunity cost on civil society, it stated.

The umbrella body also requested a provision for an “emergency listing procedure” where an asset of community value which is not yet listed for Right to Buy, is put up for sale.

“If there is no emergency listing, then this may also create an incentive to sell assets which may otherwise be of community value quickly, and there could be the loss of significant assets that could have benefited the community.

“A right of refusal for local voluntary and community groups should be included in the regulations,” NCVO added.

Timescales

It also recommended that CSOs should have 12 weeks from the time the owner of the property informs the local authority of an intention to sell, to deliver an expression of interest in purchasing it, and six months to submit their plans for the property’s future use.

The NCVO concluded its submission by criticising the name of the Community Right to Buy consultation, saying it was misleading and causing confusing amongst CSOs.

“The duty on local authorise is to ensure a moratorium period and keep lists of community assets,” it said. “At no point is there a ‘right’ for a community to buy an asset as there is no obligation to accept their bid or sell to the community.”