Asset Transfer
Choose from our useful asset development information
Assets for Enterprising Communities in Wales
What is Community Asset Based Development?
Challenges to Assets Development
Asset Transfer
"Asset Transfer is a term used to describe the process of the Transfer of the ownership (or leasehold) of property or land from one party to another. Currently, the term is being used in the Transfer of public sector assets to voluntary and community sectors. Local Authorities and some other bodies have the power to dispose of land and buildings under General Disposal Consent [Wales] 2003 at preferential rates – often under market value – if this will help secure the “promotion or improvement of the economic, social or environmental well-being of its area.”
What is an ‘asset’?
‘A useful or valuable thing or quality, skill or person’
Property owned by a person or company which has a value or ‘something valuable belonging to a person or organisation which can be used for the payment of debts’
eg. a company’s assets can include cash, land or buildings, investments, machinery or specialist knowledge or copyrights – such as music or computer software
Liquid Assets – money or things which can easily be changed into money
Natural Assets – natural resources such as our environment, landscape, rivers, forests, seas which have a value to us but can be exploited or used up
People and Communities - Social capital and ‘sweat’ equity
Transfering Assets
In today's society local authorities and other public bodies can play a key role in Transferring assets to community organisations and enterprises
Land or buildings can be Transferred at less than market value where there is benefit to ‘economic, social or environmental well-being’ of an area under the Welsh Assembly General Disposal Consent 2003 for ‘Disposal of Land in Wales by Authorities for Less than Best Consideration’.
Assets for Enterprising Communities in Wales
WLGA and DTA Wales briefing on asset development
What is Community Asset Based Development?
Community ownership and management of buildings & land leading to community Transformation
Community ownership of assets is a key to achieving financial viability, independence & sustainability which underpins community based enterprises & regeneration organisations
Within the third sector there has been a concerted action and focus on purchase or Transfer of land and buildings by development trusts, co-operatives & other community enterprises
‘Assets’ can also include equipment, other natural assets (woodland, materials for recycling)
Financial ‘assets’ – capital funds, endowment of funds or investments which show as ‘assets’ in accounts
Context for Asset Development
It should be noted that there has been track record of asset development by community enterprises and other third sector organisations in Wales. There are diverse examples of asset development in the community but most have been hard won, often succeeding in spite of obstacles, minimal resources and major time delays.
Some assets have been developed with the support of partners- local authorities other public bodies. In some cases many assets have been acquired by community organisations at market value with use of grant or loan funding
Income generation from Assets
Assets in community control or ownership can provide social, economic, cultural & environmental benefits. They can also be used to generate independent income and investment, including loans, and help move on from grant dependency.
Development trusts in the UK earned £20 million from their assets in the last financial year, which was re-invested back in local communities.
Making Community Owned Assets Work - Creating New Social & Community Enterprises
Community assets are the base for a wide range of community enterprises & services provided by community organisations or development trusts & other social enterprises.
Examples in Wales
- Managed workshops or office space
- Shops & retail developments
- Restaurants & cafes
- Community resource centres
- Arts & cultural enterprise centres
- Heritage & craft workshops
- Housing – including green homes
- Sports & leisure facilities
- Recycling & environmental improvements
- Play & childcare facilities
- Renewable energy businesses
- Healthy living centres
Challenges to Assets Development
Many communities embark on asset development but it isn’t appropriate for all organisations.
Before starting any asset Transfer process communities need to understand and evaluate whether the community assets are indeed ‘viable’, not just liabilities and importantly ‘fit for purpose’ – many are not!
Community organisations’ staff & Boards need a good range of skills, knowledge & governance to buy, develop & manage assets.
Asset Development can be complex and involve risk - finance, legal, design, planning. Therefore it is important to get good professional advice & support during this process.
Most projects can take several years from inspiration to implementation. Therefore a long term planning approach & vision is required to managing the asset Transfer and development process and thus aid keeping wealth in communities.
Case Studies
These case studies serve to make the unfamiliar familiar, and give readers an overview about the issues using specific member projects to better understand
Gorseinon Development Trust Case Study
Community Land Trusts
Community Land Trusts are mechanisms for democratic ownership of land by the local community. Land is removed from the commercial market and put ‘in trust’ to enable long-term affordable, sustainable local development.
e.g. Include Isle of Gigha Trust (Hebrides) & Land for People in Wales.
Community Land Trusts allow land to be brought into community use for affordable housing, workspace, food production, conservation, community investment.
Community Right to Buy
In 2003 the Scottish Executive introduced the Land Reform (Scotland) Act providing a Community Right to Buy for rural communities in Scotland.
Community Right to Buy legislation could be established across UK in urban & rural areas. Communities could register an ‘interest’ in and have option to buy or acquire land.
Further Information
Contact : info@dtawales.org.uk , www.dta.org.uk
Social Enterprise Strategy for Wales (Welsh Assembly Government - 2005)
DTA publications
To Have and To Hold – DTA Guide to Asset Development (2005)
WLGA and DTA Wales briefing on asset development
Fabulous Beasts – stories of community enterprises (DTA 2003)
Developing an Asset Base (DTA 2003)
Asset Transfer – how to do it (DTA 2003)
Taking Root – stories of rural community enterprise from the DTA (DTA 2004)
Other Publications/Reports
Community Land Trusts – capturing value for communities (NEF/Community Finance Solutions) & www.communitylandtrust.org.uk
Making Community Buildings Work for People (Civic Trust 2005)
Building Sustainability – making money from buildings (Bassac 2002)
Communities Taking Control – report on community ownership of assets
Quirk Review- Making assets work (May 2007)
Opening the Transfer window (CLG 2007)