Helen Kidd and Louise Norris explain why charities and community organisations need to look more closely at long-term costs and financial planning to keep projects on track
Looking beyond acquisition: the hidden costs of ownership
Charities and community organisations taking ownership of buildings using right-to-buy powers need to look carefully at long-term costs and plan for sustainability. Considering ongoing operational needs, maintenance, and future expenses is just as important as securing the building itself.
The Scottish Government has been consulting on a review of its Community Right to Buy legislation - which empowers communities to acquire land and assets - as part of efforts to simplify and strengthen the process.
It is a law with community benefit at its heart - benefits which could grow even further through better strategic planning.
Groups often come together with passion and vision to secure ownership of buildings or land, but they do not always fully understand the obligations that ownership entails. It’s important to understand exactly what you are taking on, including the cost of renovating or adapting the property for its intended purpose, to avoid being caught out.
Many of these properties are older buildings that lack features such as disabled access. While there are often grants available to support the purchase, funding for conversion and refurbishment can be limited.
That’s where some organisations - who have not looked far enough beyond acquisition - can be surprised. Without adequate planning, even the best-intentioned projects can quickly stall.
Governance, structure, and strategic planning
Community Right to Buy legislation is currently most prominently used in two ways:
- Asset transfers where of councils transfer ownership of publicly owned buildings to community organisations - sometimes for as little as £1 or at market value.
- The right to buy abandoned or derelict sites from private owners for community use.
Under either model, constituted organisations must review their governance and legal structure to ensure they remain compliant and effective when acquiring a building. They need to understand what their constitution allows them to do.
For charities, it’s essential to ask: "Does this purchase align with your charitable purpose? Might you need to set up a trading subsidiary? If so, how is that governed, and what implications does it have for the organisation?"
Without a sound governance structure, the foundations for sustainable operation become far more difficult to build.
Planning for the long term
The Scottish Government consultation on Community Right to Buy, which closed on 5 October 2025, sought views on simplifying the current four separate rights to buy that community groups can access into two - compulsory and non-compulsory.
Whatever the outcome, it’s vital that potential purchasers look beyond the initial purchase and carry out thorough due diligence throughout the process, including engaging professional advice early on.
The benefits that the right to buy can bring are huge, playing a significant role in protecting local services and keeping communities vibrant.
However, costs such as insurance, construction, maintenance, and staffing must be factored in from the outset to secure the long-term success of any change of ownership project.
Community ownership in numbers
The Scottish Government has reported that, under the Community Right to Buy, community groups have submitted 268 applications to acquire their own assets, with two-thirds (175) approved by Scottish Ministers.
Additionally, since asset transfer legislation was introduced in 2017, more than 300 assets have been transferred into community ownership, lease, or management - ranging from community halls to parks and woodlands.
The positives of community ownership will be celebrated during Scotland’s Community Land Festival - spearheaded by Community Land Scotland - from 17 October until 2 November 2025.
This growing movement shows what can be achieved when communities take control of their future - creating spaces that meet local needs, protect heritage, and support lasting change.
With clearer planning, stronger governance, and early professional advice, the potential of community ownership can be fully realised.
Published 12 November 2025
First published in Third Force News
