Guide
Selling property listed as community value
What happens when you want to sell a property that has been listed as an Asset of Community Value. Covers the moratorium process, your rights as owner, exemptions, and how to claim compensation for losses.
What an Asset of Community Value listing means for you
If your property has been listed as an Asset of Community Value (ACV), you face restrictions when you want to sell. The Localism Act 2011 gives local community groups the opportunity to bid for properties they value - but it does not force you to sell to them or accept any particular price.
This guide explains what you need to do when selling a listed property, your rights throughout the process, and how to claim compensation if the listing causes you financial loss.
What makes property eligible for listing
Community groups can nominate your property if they believe it contributes to local social wellbeing. Understanding the criteria helps you assess whether a listing might be challenged on appeal.
Pubs are the most commonly listed type of asset, followed by village shops, community centres, and sports facilities. If your property is primarily residential, it cannot be listed - but a building that contains a residence alongside its community function (such as a pub with a flat above) can be.
The moratorium when you want to sell
When you decide to sell a listed property, you cannot simply put it on the market and accept the best offer. You must first notify the local authority, triggering a moratorium period that gives community groups time to express interest and prepare a bid.
What the moratorium means in practice
During the moratorium:
- You cannot complete a sale to anyone except a community interest group
- You can continue marketing the property and negotiating with potential buyers
- You can agree a sale in principle - but you cannot exchange contracts until the moratorium ends
- You retain full ownership and can continue using the property as normal
- You are under no obligation to sell to the community or to negotiate with them
If no community group expresses interest within the initial 6-week period, you can proceed with your sale immediately. If a group does express interest, you must wait the full 6 months - but after that, you can sell to anyone at any price.
Your rights as property owner
The ACV scheme is designed to balance community interests with your property rights. You have significant protections throughout the process.
Key protections to remember
The listing does not:
- Force you to sell - You can decide not to sell at all
- Set a price - If you do sell, you choose the price and buyer
- Restrict your business operations - You can change how you use the property
- Give anyone access rights - The community has no right to use your property
- Prevent development - ACV listing is separate from planning permission
The only restriction is on completing a sale during the moratorium period. After the moratorium ends (or if no community interest is expressed), you have complete freedom to sell to whoever you choose.
Exemptions: when the moratorium does not apply
Several types of transaction are exempt from the moratorium. If your sale falls into one of these categories, you can proceed without triggering the waiting period.
The protected period
After a moratorium ends, you have an 18-month 'protected period' during which you can sell freely. If you notify the local authority of an intention to sell during this period, no new moratorium applies. This prevents community groups from repeatedly triggering moratoria to delay legitimate sales.
The protected period runs from the date the moratorium ends (either because 6 months passed, or because no community interest was expressed within 6 weeks). It applies to the current owner only - a new owner would face a fresh moratorium if they wanted to sell.
Appealing an ACV listing
If you believe your property should not have been listed, you can challenge the decision. Appeals are free and can succeed on several grounds.
Is it worth appealing?
Consider appealing if:
- Your property's main use does not serve community social interests
- The nominating group has no genuine local connection
- The property is primarily residential
- There is no realistic prospect of community use continuing (e.g., the building is derelict)
Appeals can take several months. If you are in a hurry to sell, the going concern exemption or waiting out the moratorium may be faster than pursuing an appeal.
Claiming compensation for losses
If the ACV listing or moratorium causes you financial loss, you can claim compensation from the local authority. This is an important protection that many property owners do not know about.
What you can claim for
Compensation can cover:
- Lost sale proceeds - If a buyer withdraws or reduces their offer because of the moratorium
- Holding costs - Mortgage interest, insurance, maintenance during the moratorium
- Professional fees - Legal and estate agent costs wasted on a failed sale
- Business losses - If the listing affects the value of your business
You must claim within 13 weeks of incurring the loss. Keep detailed records of all costs and evidence of how they relate to the ACV listing or moratorium.
What happens after the moratorium ends
Once the moratorium period expires (or if no community interest was expressed), you can:
- Sell to any buyer at any price
- Accept a community bid if you wish - but you are not obliged to
- Withdraw from the sale entirely
- Sell during the 18-month protected period without triggering a new moratorium
The community has no right of first refusal and cannot match or outbid other offers unless you choose to let them. The moratorium only provides time to prepare a bid - not any guarantee of success.
Practical steps when selling a listed property
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Check if your property is listed
Your local authority maintains a list of Assets of Community Value. Check their website or contact the planning department. The listing is also recorded on the Land Registry title.
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Consider if an exemption applies
If you are selling to a family member, as a going concern to continue the same use, or during insolvency, you may be exempt from the moratorium. Take legal advice if you are unsure.
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Notify the local authority of your intention to sell
Submit written notice to your local authority. This triggers the moratorium clock. There is no prescribed form - a letter clearly stating your intention to sell is sufficient.
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Continue marketing during the moratorium
You can market the property, show it to buyers, and negotiate terms. You just cannot exchange contracts with non-community buyers until the moratorium ends.
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Track all costs carefully
Keep records of any losses or expenses caused by the moratorium. You have 13 weeks from incurring a loss to claim compensation from the local authority.
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Complete your sale after the moratorium
Once the moratorium ends, you can exchange and complete with your chosen buyer. Remember you have 18 months to sell without triggering a new moratorium.
Pubs: The Pubs Code and other protections
If you own a tied pub (one bound to a pub company), be aware that the Pubs Code and the Pubs Code Adjudicator provide additional rights alongside the ACV regime. These include:
- Right to a Market Rent Only option
- Parallel rent assessments
- Protection against unfair practices by pub companies
The ACV listing and the Pubs Code are separate regimes with different purposes. The ACV protects community interests; the Pubs Code protects tenant publicans from unfair tied agreements.
Common questions
Can I change the property's use to avoid the listing?
Yes. The ACV listing does not restrict how you use your property or whether you can apply for change of use planning permission. However, if you convert a pub to residential use, you may face separate planning restrictions under the Town and Country Planning (General Permitted Development) Order.
What if I need to sell urgently?
If you need to sell quickly, consider whether an exemption applies (particularly the going concern exemption if selling to someone who will continue the same use). You can also negotiate with a buyer willing to wait out the moratorium - many property transactions take several months anyway.
Does the listing affect my insurance or mortgage?
The listing itself should not affect insurance. However, if you are selling and the moratorium delays completion, your buildings insurance and mortgage terms remain in force. Check with your lender if you have concerns about maintaining payments during an extended sale process.
What happens if the community does buy the property?
If a community group successfully purchases the property, they become the new owner with full property rights. They are not required to maintain any particular use, though community benefit organisations often commit to preserving the community function in their governing documents.