For surveyors active in the leisure sector and those managing pub estates at local, regional and national level, the Asset of Community Value (ACV) regime has long been a factor to navigate. That complexity is about to increase considerably, and the campaign infrastructure to exploit the new regime is already being put in place.

The English Devolution and Community Empowerment Act 2026 has received Royal Assent, although it has yet to be brought into force. When commenced, it will materially alter the balance of power between property owners and community groups, with potentially significant implications for property values, transaction timelines and disposal strategies across the leisure sector. 

The ACV regime, introduced under the Localism Act 2011, allows community groups to nominate assets for listing by the local council. Once listed, a proposed disposal triggers a six-week moratorium during which community groups can express an interest in bidding. If they do so, the moratorium extends to six months in total. Crucially, the current regime does not give community groups a right of first refusal. The owner remains free to sell to whichever purchaser they choose once the moratorium period ends.

The new act changes that position in two important ways.

First, it extends the moratorium period from six to 12 months, doubling the period during which a relevant disposal cannot be completed. For owners seeking transactional certainty, this creates a far greater degree of risk and delay.

Second, community interest groups will gain a right of first refusal during that moratorium period. For the first time, the regime moves beyond simply delaying transactions and introduces a genuine mechanism through which community groups can seek to acquire listed assets.

The practical challenge of raising finance will remain for many groups. However, the existence of a right of first refusal is likely to influence buyer appetite, transaction structures and valuations. The potential impact on the marketability of listed assets should not be underestimated.

The scope of the regime is also widening. Property of economic value will now fall within scope, meaning a pub that may no longer be commercially successful could still qualify for listing if it is considered economically important to the surrounding area.

Sporting assets are also being recognised as a distinct category. A pub with a bowling green, for example, may find the sporting element independently attracts listing and the enhanced protections that follow. Similar issues could arise for sports and social clubs, golf facilities and other venues with sporting uses.

At the same time, the campaign infrastructure supporting nominations is becoming increasingly sophisticated. CAMRA, already one of the most significant drivers of pub nominations, has strengthened its support for local branches through detailed guidance, template documents and nomination resources. It has also re-established the All-Party Parliamentary Group on Pubs and continues to lobby for stronger protections for community assets.

 The convergence of stronger legislation, better supported nominations and sustained political pressure is likely to lead to increased nomination activity and greater scrutiny of disposal plans. 

For regional breweries and larger pub-owning businesses, the changes create a particular challenge. Pubs that are no longer viable or sit at the edge of an estate are often sold to fund investment elsewhere. The new regime has the potential to make those disposals slower, more uncertain and more complex.

Many of the assets communities are keenest to protect are struggling because of economic realities rather than a lack of local support. While the forthcoming changes strengthen community rights, they do not necessarily address the underlying financial challenges faced by many leisure assets. However, they do place additional burdens on owners and operators.

The timing of commencement remains uncertain. The government closed the Community Ownership Fund, which had provided financial support for community acquisitions, and campaign groups have already argued that the new rights will be difficult to exercise without replacement funding. As a result, there remains uncertainty over when the new provisions will come into force.

That uncertainty should not encourage complacency. The direction of travel is clear, and businesses should be reviewing their exposure now. 

Whether the new regime proves transformative or largely procedural will depend in part on how effectively community groups can access funding and exercise their enhanced rights. What is already clear, however, is that the balance between community interests and private ownership is shifting. For leisure sector owners and their advisers, preparing now is likely to be far preferable to reacting later.

Mark Brown is a partner at Freeths with extensive experience before both local councils and the First-tier Tribunal and Upper Tribunal in ACV matters.

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