Community Ownership:
A Way Forward for Wales
New research by Plunkett UK, commissioned and funded by Building Communities Trust (BCT), sets out recommendations to grow the community ownership sector in Wales.
The report, Community Ownership: A Way Forward for Wales, builds on findings from the 2022 inquiry into community assets in Wales, undertaken by the Welsh Parliament last year. The inquiry drew together evidence that demonstrated the positive social, economic, and environmental impact of community-owned assets. Representatives of the Community Ownership Group (an alliance of organisations promoting community ownership in Wales) also submitted evidence on the challenges that face communities that try to take ownership of land and buildings. A number of recommendations were identified for the Welsh Government to address these challenges, including the proposal to establish a new commission on community assets.
One year on from the inquiry, this research has been produced to offer a way forward for the commission, setting out short- and long-term priorities. It offers an overview and evaluation of existing policies and legislation in Scotland and England, identifying strengths and weaknesses to provide lessons for future “community rights” in Wales. In the long term, the evidence suggests that a Community Right to Buy would benefit community ownership projects in Wales, by offering first refusal on assets that come on to the market.
The research also voices the aspirations and needs of community groups, that are either currently undertaking or have recently completed community buyouts. The lived experiences of people undertaking community ownership projects have shaped specific recommendations about what support could be offered in the short to medium term.
For questions about the research, please contact Georgina Edwards, Policy and Research Manager, Plunkett UK or Eleri Williams, Policy Officer, Building Communities Trust.
Key Findings
The number of community-owned assets has grown at a much faster rate in Scotland compared to England, since legislation was introduced.
Once triggered, the Community Right to Buy is several times more effective than the Community Right to Bid, and only 1.5% of nominated community assets make it into community ownership in England, compared with 57% in Scotland.
87% of respondents wanted to save an asset from being lost to the community (the most common motivation for a community ownership project); but only 7% were offered the chance to take ownership.
77% of communities reported challenges when trying to acquire their asset. Common causes were capital costs, high price of the asset and uncooperative sellers.
Groups trying to purchase assets in private ownership were more likely to report difficulties with an uncooperative seller - 44% compared with 10% of publicly-owned assets.
Prior awareness of community ownership may mean communities are more likely to take on assets - 67% said they were aware of community ownership prior to starting the project.
Welsh groups had the lowest level of prior awareness, while Scottish groups had the highest.
Welsh groups accessed information and support from a more limited range of sources, were more likely to report lack of skills/knowledge being a barrier; and were more likely to rely
Short-term recommendations
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Networks require relatively little funding, could be in person and/or online, and be managed by groups already providing support to community ownership projects in Wales (to enable efficient signposting of members to supportive resources).
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Publicise examples of good practice to enable a ‘ripple effect’, where successful buyouts would be used to encourage others locally. This could go hand-in-hand with enabling peer networks.
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Ensuring access to online resources could involve signposting to and consolidation of existing resources; adapting and translating existing resources for a Welsh context; or commissioning new ones such as a “road map” for these types of projects in Wales.
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Research participants said that having information about advice, support and funding relevant to community ownership in one place would be beneficial.
Long-term recommendations
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Introduce a Community Right to Buy and offer communities first refusal on assets coming on to the market. The majority of projects examined in this research were concerned with privately-owned assets, so a mechanism enabling communities to acquire these is essential.
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The Communities Facilities Programme was cited as very helpful by community groups interviewed, therefore continuing and expanding capital/revenue funding to groups in Wales is necessary.
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Groups stated that having to apply for multiple local/national funds - often providing similar information but having to meet multiple criteria - was difficult and time-consuming, if application processes for funding could be consolidated this would ease the burden.
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Currently, public authorities are not obliged to engage with communities about asset transfer or community ownership; the commission could consider refreshing guidance and introducing mechanisms to give groups the power to request transfer of neglected/underused assets, or help raise awareness of this as an option.
