Community Right to Buy (CRtB)

What is it for? It’s one of many tools to allow communities to purchase land. Provides an opportunity for communities throughout Scotland to register a community interest in land and land based assets under Part 2 of the Land Reform (Scotland) Act This was a major change under the Community Empowerment Act, where is was previously restricted to rural communities only. Provide those communities who successfully registered an interest, with a pre-emptive right to buy the land when it’s offered for sale.

What it is not for Not a forced sale of land. Not a compulsory purchase. Should not be used as a means to block or blight development. Should not be used to block another interested party from purchasing land. A registration is not meant to preserve the ‘status quo’.

Eligible / registrable land Any land or land based assets (including foreshore, mineral or salmon fishing rights). Any landowner (Public or Private). Land can be adjacent to the community or within the community.

Application types Timeous: No steps have been taken to transfer the land. Late: Steps have been taken to transfer the land.

Who Can Use it? A community Company Limited by Guarantee, Scottish Charitable Incorporated Organisation (SCIO), or Community Benefit Society (BenCom) needs to be formed in order to register a Right to Buy. This is a major change. SCIO's and BenComs have been added to the types of community company allowable under the Act. This company should be for: 1.The benefit of the community, 2.Run by the community, 3.Registered with Companies House, OSCR or FCA as appropriate. 4.Be consistent with furthering sustainable development.

What is a Community? Another change is to how a community can define itself. Previous, a community could only be defined by postcode unit(s), with Ministerial discretion to allow other ways. Now, a community can be defined by one or a combination of; – Electoral Ward – Community Council area – Postcode area (e.g. EH) – Postcode district (e.g. EH99) – Postcode sector (e.g. EH99 1) – Postcode Unit (e.g. EH99 1SP) – Island – Settlement (e.g. Falkirk) – Locality (e.g. Carron)

Registering a interest in land - general supporting docs (e.g. maps, community support, constitution, ownership checks). Details on connection with the land. Proposals for the land. Sustainable Development proposals. Public Interest. For late applications; – Greater demonstration of community support and a much stronger public interest case – Show that relevant work or steps had been taken prior to steps being taken to transfer the land. Previously a community had to have begun the process of submitting an application. Information within an application includes

Registering a interest in land - general Application submitted to Community Land Team. Application issued to landowner and a temporary prohibition is placed on the owner, which prevents them from transferring the land for value. This does not prevent any development or leasing by the owner. Landowner has a chance to provide any comments on the application. Community Body are then invited to respond to any landowner’s comments, unless it is a late application. Ministers have 63 days for timeous to intimate decision from receipt of a compliant application. Ministers have 30 days (rather than 63) for “Late” to intimate decision from receipt of a compliant application. Community Body or the landowner can appeal the decision at the local sheriff court. A Compliant Application is ready

Registration and re-registration If the registration is approved by Ministers it lasts for 5 years from the date it was approved and can be re-registered on a 5 year rolling basis. Full prohibition is placed on the landowner for as long as the registration lasts. This still only prevents a transfer for value, and does not prevent development or leasing. Registration will normally last until: a)the community withdraws it registration; b)completes the purchase of the land; or c)fails to re-register.

Activation of a Right to Buy - general Landowner “triggers” right to buy or if a ‘Late’ application the process jumps to Ministers appointing a valuer. Community Body intimates to Ministers that it wants to go ahead with its right to buy; Ministers then appoint an independent valuer (valuation takes 8 weeks, extended from 6). Valuation is “market value”. It is not whatever the community body or owner thinks it’s worth or is willing to pay for it. Appeal of valuation within 21 days.

CB has 12 weeks from the date the valuer was appointed by Ministers to secure “majority” support through a ballot of its “community”. The ballot process is arranged and paid for by the Scottish Government. Previously, this was done by the community body. Activation of a Right to Buy - general

Community Body submits its information to Ministers (including supporting evidence e.g. Feasibility Study/Business Plans and Section 51(B) form). The ballot result is sent by the independent ballotter (and copied to the community body). Ministers decide whether to consent to the right to buy. Appeals to Ministers decision to be lodged within 28 days, at local sheriff court. The purchase is made at an agreed price, or if no agreement can be reached, at the value assessed by the independent valuer, or if valuation appealed, by ruling of the Lands Tribunal. The community body must then raise money to conclude purchase and sign missives with 8 months (this was extended from 6 months). This period can be extended, but only with the agreement of both parties.

Additional Changes Mediation – Ministers can, on request from either the owner, creditor, or community body, arrange, or facilitate the arrangement of mediation. This is only in relation to a registration or purchase.

Additional Changes A key change is the introduction of Part 3A. This allows community bodies to submit an application to buy land which; – Is wholly or mainly abandoned or neglected or, – the use or management of the land is such that it results in or causes harm, directly or indirectly, to the environmental wellbeing of a relevant community Obviously, this is a complex area and we plan to go out to consultation in the next few weeks, to get opinions on various aspects such as what Ministers should take into account in deciding whether or not land is eligible. This right to buy is compulsory, so it does not need a willing seller. However, this does mean that community bodies have to make a stronger case for the purchase.

No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant 192 No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant 192 No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant 192 No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant 192 No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236  withdrew  were deleted by Ministers or  didn’t re-register their interest after 5 years 42 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant Still waiting to be triggered No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236  withdrew  were deleted by Ministers or  didn’t re-register their interest after 5 years 42 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant Still waiting to be triggered No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236  withdrew  were deleted by Ministers or  didn’t re-register their interest after 5 years 7 Registered an interest, but as far as we are aware have bought outwith the Act 42 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant Still waiting to be triggered No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236  withdrew  were deleted by Ministers or  didn’t re-register their interest after 5 years 45 7 Registered an interest, but as far as we are aware have bought outwith the Act 42 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 The Right to Buy has been triggered No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since 2004

No. of applications to register an interest in land received from those who are compliant Still waiting to be triggered No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236  withdrew  were deleted by Ministers or  didn’t re-register their interest after 5 years 45 7 Registered an interest, but as far as we are aware have bought outwith the Act 42 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 The Right to Buy has been triggered No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since Didn’t purchase or withdrew

No. of applications to register an interest in land received from those who are compliant Still waiting to be triggered No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236  withdrew  were deleted by Ministers or  didn’t re-register their interest after 5 years now own those assets 45 7 Registered an interest, but as far as we are aware have bought outwith the Act 42 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 The Right to Buy has been triggered 21 No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since Didn’t purchase or withdrew

No. of applications to register an interest in land received from those who are compliant Still waiting to be triggered No. of Companies formed to have received a compliance letter Limited by Guarantee SCIO’s (from 15/4/16 only) Bencom’s (from 15/4/16 only) 236  withdrew  were deleted by Ministers or  didn’t re-register their interest after 5 years now own those assets 45 7 Registered an interest, but as far as we are aware have bought outwith the Act 42 Acres have been bought by community bodies going through the whole of the Community Right to Buy, and counting 0 0 The Right to Buy has been triggered 21 No of those Approved by Ministers 122 No. Not approved, either by  CB withdrawing  Or Ministers declining to consider 70 The statistical Journey of CRtB since Didn’t purchase or withdrew 52,070.77

Useful web links Or contact us at Right to Buy - land/right-to-buy Register of Community Interests in Land - Mapping Tool - land/right-to-buy/MappingTool Register of Scotland - By Post to Community Land Team D Spur, Saughton House Broomhouse Drive Edinburgh EH11 3XD By phone Helpdesk: By