Community asset transfer policy 2025

What is a CAT?

7. The Local Government Association defines a CAT as: "transferring the ownership of land or buildings from a statutory body to a Community Organisation at "less than best consideration" - that is at less than its full market value - "in order to achieve a public benefit".

National policy context

8. Prior to 2010, community asset transfer was encompassed within government policies to create sustainable communities, empowerment, and regeneration (for example the 2008 white paper Communities in control: real people, real power (opens new window)).

9. The most important piece of work contributing to government policy was the Quirk Review, "Making Assets Work" which was published in May 2007. The Rreview strongly advocated in favour of local ownership and management of public assets. This was supported by the then government and a number of new initiatives were created, including the establishment of the Asset Transfer Unit.

10. The Localism Act 2011 (opens new window) devolves decision making powers to neighbourhood level and advocates new rights and powers for communities and individuals such as the "Community Right to Challenge" and "Community Right to Bid" (for assets of community value). Local authorities are now required to maintain a list of "assets of community value", whereby communities have the opportunity to nominate, for possible inclusion, the assets that are most important to them. Then, when a listed asset, is available for sale or change of ownership, VCSE sector organisations will be given time to develop a business case and raise money so they can bid for the property when it comes on to the open market.

11. CAT will continue as a council policy alongside the statutory Community Right to Challenge and Community Right to Bid.

Why have CATs?

12. VCSE sector organisations make a significant contribution to community life and to the social and economic wellbeing of Gateshead residents. Transferring an asset to a local VCSE sector organisation can unlock local enterprise, engage, and develop volunteers, and offer local employment opportunities which can then attract capital investment to create a thriving community asset.

13. Working with our communities and partners is fundamental to enabling empowered and resilient communities that are better connected to the assets in their neighbourhoods. CATs are one way we can unlock the potential within our communities.

What are the benefits of CATs?

14. Changing ownership or management of assets within a community offers opportunities to extend the use of a building or piece of land, creating the potential to increase its value in relation to the numbers of people that benefit from it and the range of opportunities it can offer. Community-led ownership can also present additional opportunities to secure resources within a local area and to empower residents and communities.

15. The benefits of CATs can be measured in different ways, such as economic, social, or environmental wellbeing benefits for a community. Some potential benefits include:

• utilising potentially surplus council assets to deliver community led services at a more local level
• physical assets providing a base for building relationships and creating opportunities within the local community (for example training opportunities, communal warm spaces and support and advice services for local residents).
• offering suitable lease terms to enable VCSE sector organisations to access grant funding (for example funding to refurbish the building or to support staff training and development)
• opportunities for increased financial self-sustainability through supportive agreements
• an opportunity to work in partnership with the council to provide a building which is suitable for the needs of the community and the proposed services
• VCSE sector organisations will be signposted to appropriate networks and peer support. This will provide opportunities to pool knowledge and resources.

16. Any proposal to transfer an asset to the community will need to clearly demonstrate a range of benefits for the local community.

17. CATs also provide benefits for the council. A transferred asset may:

• provide a more accessible and responsive base from which to deliver services that will benefit the local community and the wider borough
• promote inward investment into the local area
• help to build relationships between the council, the VCSE sector and the community
• rationalise its estate and facilitate more effective and efficient use of its asset base by maximising use of its buildings and reducing its financial outgoings
• maximise the community benefit from buildings transferred as the focus is on improved services and community outcomes through a more focused neighbourhood approach
• build capacity within the community to deliver the council's priorities and outcomes by acting as a catalyst to stimulate stronger partnership working between VCSE sector organisations, the council and other partners, providing opportunities for long-term working between sectors

How do we make balanced decisions about how we use our property assets?

18. As a local authority all decisions we make, including those about potential CATs, must balance a range of often competing factors guided by our corporate priorities. These priorities are set out in our Corporate Plan and relevant council frameworks and plans have been developed to deliver them. This can mean that, depending on the situation, we will need to balance our corporate priorities, the financial benefit of disposing of an asset, and the potential added value a CAT can bring to a community and its residents.

19. Policies that will influence the decisions we make about CATs include, but are not limited to:

• Corporate Plan
• Corporate Equality, Diversity and Inclusion Plan
• Health and Wellbeing Strategy
• Physical Activity Strategy
• Corporate Asset Strategy and Management Plan
• Thrive Agenda
• Gateshead Compact 2024

Download the Community asset transfer policy as a PDF (PDF, 1 MB)