Redefining ‘community value’ – what pub owners and operators should know

The pub has long been at the heart of British communities. But new rules are changing the definition of community value, with potential repercussions for pub owners and operators. In this article, Kate James, Managing Associate at TLT explores the new rules around ‘Assets of Community Value’.  

The humble pub is often seen by local residents as a valued part of many UK towns and villages. Beyond their role as hospitality venues, they may serve as social spaces for local communities and contribute to an area’s sense of identity. In some cases, this can lead to pubs being considered for designation as ‘Assets of Community Value’ (ACVs).

Now, new reforms to the UK’s approach to community assets could have a direct impact on how operators manage their venues, particularly when it comes to buying or selling property. The English Devolution and Community Empowerment Act, which recently received Royal Assent, introduces important changes to the way ACVs are defined and handled.

While pubs have long been a key focus of the ACV regime, the latest reforms go further, potentially bringing more pubs and hospitality venues into scope and altering how property sales processes play out.

A quick refresher on ACVs

Under the current system, community groups can apply to list a building or piece of land as an ACV if it supports the social wellbeing or interests of the local area. Many pubs have historically been listed under this regime.

Once a property is listed, the owner cannot immediately sell on the open market. Instead, a moratorium period of up to six months is triggered if a sale is proposed, giving the community time to organise and potentially bid for the asset.

For pub operators, this has often meant delays to transactions, additional uncertainty, and in some cases, changes to disposal strategies.

What’s changing?

The new Act expands the definition of what counts as ‘community value’. Crucially, this now includes assets that contribute to the economic wellbeing of a local area, not just its social or cultural life.

In practice, this could widen the net significantly. More pubs, particularly those in town centres or mixed-use developments, may now fall within scope. The legislation also widens the category of venues that can be included and can now include those that have been closed for a significant period of time which may not have been previously captured within the community value definition, reflecting a policy shift towards protecting spaces with future community potential.

Another major development is the introduction of a formal Community Right to Buy. This gives community groups the first opportunity to purchase an ACV when it comes up for sale.

At the same time, longer moratorium periods are expected. While this may give communities a more realistic chance of raising funds, it is likely to slow down transactions and create further uncertainty around timelines, deal structures and valuations. Further regulation is expected to clarify many of the points under the act, but as of now, it is unclear when this will be forthcoming.

What does this mean for operators?

For pub and bar owners, these changes reinforce the importance of understanding how properties are or could be classified.

Operators planning to sell sites may face extended timelines and should be prepared for greater scrutiny from community stakeholders. Even where a venue is not currently listed, the broader definition increases the possibility of future nominations.

There may also be implications for redevelopment or repurposing plans, particularly where a site has strong local ties or sits in a prominent town centre location.

Getting ahead of the changes

With the Act now in force, the key for operators is preparation.

That means reviewing property portfolios to identify sites that could fall within the revised ACV criteria, factoring in potential delays when planning disposals, and seeking early legal advice where necessary.

 Q&A

Q: I have heard that the UK government has tweaked licensing rules in England and Wales for the World Cup. What are the updates?

A: Although not yet law, the UK government has indicated that it will be introducing temporary licensing relaxations in England and Wales to support pubs during the World Cup. It is anticipated that these will allow venues to stay open later than usual for key knock out phase matches involving home nations. In practice, pubs can remain open until 01:00 for matches kicking off between 17:00 and 21:00,and until 02:00 for later kick-offs. When these changes become law, watch out for further updates.

Read more from Pub & Bar's June 2025 issue: Pub & Bar - Magazine

This article was first published in Pub & Bar