In December 2024, the Government announced its plans for an ‘English Devolution Bill’[1] that will provide local authorities with more decision-making powers to drive economic growth. By allocating greater autonomy to those with in-depth knowledge of their communities, the intention is to take advantage of growth opportunities and increase geographic equality in England. Amongst the devolved powers, the ‘Community Right to Buy’ will give local communities the opportunity to purchase valued community assets such as empty shops, pubs and community halls. This recognises the social value generated by community-led businesses.
What is a Community Right to Buy?
The ‘Community Right to Buy’ is the evolution of the current ‘Community Right to Bid’, which allows communities six months to prepare for the sale of ‘Assets of Community Value’. Whilst the Community Right to Bid recognises the value of community assets, campaigners feel it does not go far enough to keep the assets within the community. Research suggests only 2% of buildings nominated as ‘Assets of Community Value’ become community owned[2]. Campaigners argue that six months is often not long enough to raise the funds to purchase properties at market value, and the result is that community groups often lose out to other, higher bids.
The Community Right to Buy, on the other hand, will go much further to protect community assets and keep them within local ownership, committing to a ‘more robust pathway to community asset ownership.’[3] The English Devolution White Paper sets out plans to give Combined Authorities and Metro Mayors the powers to enable a ‘new approach to communities.’ The ‘Community Right to Buy’ hopes to achieve this by empowering communities to ‘make change happen’, such as taking over ownership of treasured community assets and working with civic society organisations to drive community improvements.
Civil Servants are currently drafting the bill, so we are yet to see the full details of what Labour intends to do, but campaigners at Locality and We’re Right Here have set out their vision for what a ‘Community Right to Buy’ might look like[4]. This includes:
- Allowing a community organisation to buy the asset without competition (with the required funding)
- Increasing the notice from six months to 12 months, giving community groups longer to raise the funding
- Widening the definition of an ‘Asset of Community Value’ to include any building which has the potential to be used by the community in future
Why do we need a Community Right to Buy?
As social value consultants in the built environment, we know how important spaces are to communities in creating meaningful social impact. Community buildings offer people the space to come together and access vital services to develop their social connections, wellbeing, physical and mental health.
This has been proven over time in many different communities, particularly in Scotland, which has a long history of community ownership, dating back to the Jacobite Revolution in the 18th Century. Scotland formalised this tradition via the Land Reform Act in 2003 and extended it to the Community Empowerment Act in 2015[5]. Today, there are over 700 assets in community ownership across Scotland, covering more than half a million acres of land[6]. This is in stark contrast to England, where 50% of the land is owned by just 1% of the population[7]. In Scotland, the Community Right to Buy has enabled communities to protect and develop key local services, enhance environmental wellbeing and attract investment and people[8].
In England, campaigners at Power to Change have identified some of the key benefits the country could expect to see:
- Local return on investment: 56p of every £1 local community owned assets spend stays in the local area, compared to just 40p for larger private sector firms[9]
- Similarly, for every £1 generated by asset-owning community organisations creates approximately £2.50 for the local economy[10]
- High street revitalisation: Communities can use the right to buy to purchase empty shops and pubs, which can help revitalize high streets[11]
- Community capacity building: facilitating the development of new groups that can work to the benefit of the community and to local authorities[12]
- Improving physical health outcomes by tackling loneliness and reducing the burden on social care[13]
- Generating social connections and reducing isolation by providing free/ affordable space to host community activities[14]
- Encouraging civic engagement: Allows people to feel pride in their neighbourhood and provides them with a meaningful stake in the future development of the place in which they live and / or work, encouraging membership and volunteering[15].
These benefits underpin Labour’s objectives to ‘build an economy that works for everyone’ by ‘protecting cherished community assets and high streets whilst empowering communities with new rights and levers to influence their neighbourhoods’[16].
What are the Drawbacks of the Community Right to Buy?
Power to Change’s research paper caveats these benefits by considering the potential challenges and drawbacks of a Community Right to Buy. Whilst the drawbacks are limited, there will be challenges in ensuring the bill is effective, including funding, lengthy processes and limited amounts of time. This exemplifies how it is important for the government to get it right with the bill to ensure it works for the communities it intends to support[17].
In particular, funding raises a big question for communities that have the social tools to buy a community asset but not the economic tools. Power to Change are calling for the Government to ‘turbocharge’ community ownership by making funding available to support communities in purchasing these assets.
As an extension of the Community Right to Bid, the Community Right to Buy has the potential to go much further and generate significant social value for the communities that are able to use it to their advantage. By devolving power away from Westminster, a Community Right to Buy could go a significant way in reducing inequalities around the country. While its rollout may provide challenges, if effective, the bill will empower local people by giving them the tools to develop their local economy, social economy and community engagement.
[1] https://www.gov.uk/government/publications/english-devolution-white-paper-power-and-partnership-foundations-for-growth/english-devolution-white-paper
[2] https://locality.org.uk/what-is-community-right-to-buy#:~:text=Then%20if%20these%20assets%20come,Community%20Value%20become%20community%20owned.
[3] https://www.gov.uk/government/publications/english-devolution-white-paper-power-and-partnership-foundations-for-growth/english-devolution-white-paper#:~:text=A%20new%20approach%20to%20communities&text=And%20we%20will%20look%20at,shops%2C%20pubs%20and%20community%20spaces.
[4] https://locality.org.uk/what-is-community-right-to-buy
[5] https://www.powertochange.org.uk/wp-content/uploads/2024/11/Getting-it-right-on-Community-Right-to-Buy.pdf
[6] https://www.ft.com/content/0cd407f3-cc02-4349-9bed-65eb149d2008
[7] https://www.ft.com/content/0cd407f3-cc02-4349-9bed-65eb149d2008
[8]https://dtascommunityownership.org.uk/sites/default/files/COSS%20Introduction%20to%20Community%20Right%20to%20Buy%20FINAL.pdf
[9] https://www.powertochange.org.uk/wp-content/uploads/2019/07/Assets-Report-DIGITAL-1.pdf
[10] https://locality.org.uk/assets/images/LOCALITY-KEEP-IT-LOCAL-ONLINE_revised-260318_full.pdf
[11] https://www.powertochange.org.uk/wp-content/uploads/2024/11/Getting-it-right-on-Community-Right-to-Buy.pdf
[12] https://www.powertochange.org.uk/wp-content/uploads/2024/11/Getting-it-right-on-Community-Right-to-Buy.pdf
[13] https://www.powertochange.org.uk/wp-content/uploads/2024/11/Getting-it-right-on-Community-Right-to-Buy.pdf
[14] https://dtascommunityownership.org.uk/community/community-asset-transfer/getting-ready-asset-transfer/benefits-community-ownership#:~:text=Protects%20key%20local%20services%20%2F%20facilities,jobs%2C%20training%20and%20business%20opportunities.
[15] https://dtascommunityownership.org.uk/community/community-asset-transfer/getting-ready-asset-transfer/benefits-community-ownership#:~:text=Protects%20key%20local%20services%20%2F%20facilities,jobs%2C%20training%20and%20business%20opportunities.
[16] https://www.gov.uk/government/publications/english-devolution-white-paper-power-and-partnership-foundations-for-growth/english-devolution-white-paper
[17] https://www.powertochange.org.uk/wp-content/uploads/2024/11/Getting-it-right-on-Community-Right-to-Buy.pdf
