Community Asset Transfer (“CAT”) is a statutory right under the Community Empowerment (Scotland) Act 2015. It enables community organisations to request the ownership, lease, or management of publicly owned land or buildings, with the intention of delivering long-term benefits for the local community. This mechanism is especially relevant for charities seeking to expand, provide new services, or secure premises. Importantly, the request must be granted by the relevant authority unless there are reasonable grounds for refusal.
If your organisation is seeking an asset to deliver its services, authorities covered by the Act must publish a list of all their assets, allowing organisations the opportunity to identify one that may suit their purpose.
Who can apply?
To make a CAT request, an organisation must be recognised as a “community transfer body”. This means it must be either a community-controlled body or a designated body.
For a request to take ownership of a property, the organisation's constitution must ensure it has at least 20 members.
Types of community transfer bodies include:
- A Scottish Charitable Incorporated Organisation (“SCIO”)
- A Company Limited by Guarantee, with provisions ensuring assets are used for community benefit
- A Community Benefit Society
- A community-controlled body as defined in the 2015 Act, with open membership and a clear community focus
Additionally, the organisation must identify either the geographical community it represents or describe its “community of interest”. For example, an organisation may have members from a wider geographical area, but all members may share a common interest (such as faith, a particular sport, or a shared disability). The organisation will need to demonstrate that its use of the asset will benefit that community.
Where an organisation has identified an asset, it is important to engage with the relevant authority as early as possible to discuss the proposed transfer and identify any issues that may affect it—for example, the authority’s current use of the asset and any title or planning conditions.
Who can requests be made to?
CAT requests can only be made to public bodies, known as relevant authorities, as listed in Schedule 3 of the 2015 Act. The asset can be either owned or leased by the relevant authority.
Relevant authorities include:
- Local councils
- Scottish Ministers
- NHS boards
- Transport authorities
- Scottish Police Authority
Churches and religious bodies are generally not considered relevant authorities unless they meet specific criteria outlined in the 2015 Act.
Unless a body is explicitly named in the legislation or designated by the Scottish Government, it is not required to accept or respond to CAT requests.
Development Trusts Association Scotland (“DTAS”) has recognised that an increasing number of places of worship are being placed on the market for sale. DTAS has created a new specialised team to assist community groups seeking to take ownership of such assets: DTAS Community Ownership Support Service
The best value principle
A key feature of CAT is the Best Value principle. Relevant authorities are required to obtain best value when selling assets, which usually means putting the asset on the market and obtaining the highest price. However, it is recognised that organisations may not have the cash or funding available to submit the highest bid. Therefore, non-financial benefits will also be assessed and valued. If the price plus the non-financial benefits adds up to the best value, then the asset may be transferred.
These non-financial benefits may include wider community benefits offered by the proposed transfer, such as improved social inclusion, improved health outcomes, or regeneration. It can be difficult to calculate the value of non-financial benefits, but various tools can assist—for example, the UK Social Value Bank or the National TOMS Framework (Themes, Outcomes and Measures).
Ability to deliver
A community transfer body will be required to demonstrate that it has the ability to manage the asset and deliver the proposed benefits. This will usually take the form of a business plan setting out:
- The robustness and sustainability of the organisation
- A proven track record of delivering the proposed services
- Community support for the use of the asset for delivery of services in that area
- A sufficiently qualified leadership team to take the proposal forward
- Awareness of the cost of running the asset (and any required repairs)
- Evidence of existing or proposed funding to pay the price or rent and sustain the asset and benefits into the future
A community transfer body may not have all its funding in place at the application stage. However, it will be important to demonstrate that it has received grants in the past and has had preliminary discussions (and commitments) from funders to allow the relevant authority to assess the sustainability of the request.
Relevant authorities tend to have their own CAT application forms on their websites, and the relevant form should be used when making a request. This ensures that all required information is submitted and allows the relevant authority to validate the request. Once validated, the relevant authority has six months to make a decision. The request must be approved unless there are reasonable grounds for refusal. The relevant authority must issue a Decision Notice setting out either the terms of the transfer or the reasons for refusal.
If the transfer request is approved, the community body will have six months from the date of the Decision Notice to issue its formal offer.
Appeals and reviews
If a request is refused, the community transfer body is dissatisfied with the terms of the transfer, or no decision is made within the statutory timescale, it can challenge the decision:
For local authority-owned assets:
- A review can be requested. If the outcome remains unsatisfactory, the organisation can appeal to the Scottish Ministers.
For other relevant authorities (e.g. NHS boards):
- There is no review stage. Appeals must be made directly to the Scottish Ministers.
For decisions made by Scottish Ministers:
- A review can be requested, but no appeal can be made.
Conclusion
CAT offers an opportunity for local communities to take control of local resources—whether to deliver specific services, preserve local heritage, or create opportunities for social and economic growth.
If your organisation is considering a CAT, you can contact us to ensure the process runs smoothly and is aligned with the statutory framework.
This article was co-authored by Sasha Fothergill, Trainee Solicitor in MFMac's Charities and Third sector team.
