The English Devolution and Community Empowerment Bill (the Bill) introduces major changes to the Assets of Community Value (ACV) regime. It expands what counts as an ACV, strengthens community rights, and imposes additional sale restrictions.

In this article, we look at key proposals and practical advice for landowners and developers.

ACVs and rationale for changes on the horizon

The ACV regime was introduced under the Localism Act 2011 to give communities a chance to protect assets that matter to them, such as pubs, parks, libraries, and sports grounds. The legislation enabled local communities to nominate a building or space holding special importance to the community to be placed on the local authority’s ‘List of Assets of Community Value’.

When assets on that list come up for sale, the local community can bid to buy them. Uptake has been limited, however, with fewer than 2% of listed ACVs being community-owned today.

The UK government believes the current system is ineffective. It considers that narrow definitions and short moratorium periods make it hard for communities to raise funds and secure ownership. While more highly publicised aspects of the Bill centre on the proposed ban on upwards-only rent reviews in the commercial lease market, in fact key provisions within the Bill aim to address those concerns.

For asset owners, particularly commercial and residential developers, the changes mean that more properties could be listed as ACVs, more sales and developments could be delayed or thwarted, and new procedural and compliance obligations will inevitably be imposed.

What’s changing

Relevant proposals in the Bill are far-reaching:

• Wider ACV definition
  Currently, an asset will only qualify if its primary use furthers social wellbeing and interests. The Bill expands this to include economic wellbeing. The wider ACV definition will bring village shops, corner stores, and other commercial facilities into scope.
• Removal of ‘recent past’ requirement
  The Bill removes the existing ‘recent past’ requirement, so that assets which have had community value at any time in the past gain ACV status.
• Appeal process
  The Bill also includes an appeal process, open to communities where assets have not been designated ACVs.
• Community right to buy
  The existing right to bid is replaced with a statutory right to first refusal. Communities won’t just bid – they’ll have priority to buy when an ACV is put up for sale.
• Extended moratorium
  The Bill extends the moratorium (basically, a sale freeze) period for ACVs from six months to twelve, giving communities more time to raise funds. However, owners can request a progress review at six months and terminate this extended moratorium if the prospects of community purchase look unrealistic.
• Sporting assets protected
  A new category of ACV will be introduced: Sporting Asset of Community Value (SACV). This will automatically protect sports grounds and related land, removing the need for communities to apply for ACV status to trigger these protections in respect of sporting assets.
• Independent valuation
  If owners and community groups can’t agree on price, an independent valuer will set a market-based figure.

The government’s Final Stage Impact Assessment report, published on 24 November 2025, anticipates the changes will increase ACV listings and slow down sales. Asset owners will face the extended moratorium and the inability to sell on the open market once a community group activates the right of first refusal. Sale to communities, even where an independent valuation has been obtained, may be at a lower value than would be achieved at market value. Local authorities will also bear costs for the administration and functioning of the process, and potentially compensation payments to asset owners for fees and costs incurred, where relevant. Not noted in the impact assessment, is the frustration and potential abortive costs where asset-owner/developer proposals fall away or become unfeasible as a result of the moratorium and/or community purchase.

What should land/asset owners and developers do now?

Proposed changes to the ACV regime remain subject to further amendments pending the grant of Royal Assent to the final Bill. With the Bill currently at Committee Stage in the House of Lords, it’s not expected that legislation will be in force until later in 2026 at the earliest.

In the meantime, land/asset owners and developers should:

• Identify assets or proposed development sites that could fall under the expanded ACV definition, such as restaurants, pubs, sports grounds, and hotels
• Where possible, progress planned sales/developments before changes are enacted
• Where completions are not likely to be imminent, monitor, collect and retain valuation evidence and factor in a potential twelve month moratorium to any project planning and feasibility.

If/when any sales do become subject to the new ACVs regime:

• Make use of the six-month moratorium review. If the community isn’t making progress, you may be able to terminate the moratorium early and progress your own project by reducing it from twelve months to six months.
• Stay compliant. Maintain compliance with all landowner obligations throughout the moratorium period and ACV process, to avoid disputes
• Understand and prepare for valuation disputes and proactively consider the impact on sale price negotiations
• Collect and retain evidence of additional costs incurred as a result of the enhanced ACV process, in case an application for compensation can be made to the Local Authority in due course.

ACV regime changes: How we can support you

If the Bill passes, the ACV regime will become more complex and restrictive for land/asset owners and developers. We can help you:

• Assess which assets and proposed development sites are at risk
• Plan for moratorium periods and manage sale and project timelines
• Comply with new legal and procedural requirements
• Navigate valuation disputes and apply for compensation where relevant.

For further information or tailored advice, please contact Chris, Martin or any member of our Planning or Real Estate Litigation teams.