Charities Now Given Greater Choice When Seeking Advice On Land Disposals

New Regulations made aiming to give charities more choice on who they can take advice from on disposals advisers in anticipation of charity land disposal reforms.

The Charities (Dispositions of Land: Designated Advisers and Reports) Regulations 2023 (SI 2023/467) were made on 24 April 2023.

They give charities more choice in who they can seek advice from on land disposals, by broadening who can be a designated adviser for the purpose of section 119 of the Charities Act 2011 (ChA 2011). They also simplify the content of designated advisers’ reports for use in charity land disposals, by revoking the Charities (Qualified Surveyors’ Reports) Regulations 1992 (SI 1992/2980) and replacing them with broader categories of advice which must be included in such a report.

The new more flexible, less onerous requirements will give designated advisers more discretion as to what information will best assist charity trustees in respect of a particular disposal. Also, the adviser will be able to self-certify that they have the appropriate expertise and experience to provide the advice and do not have any conflicts of interest with the charity they are advising.

Fellows of the Central Association of Agricultural Valuers and members of NAEA Propertymark (formerly the National Association of Estate Agents/NAEA) at fellow grade will be able to provide advice on charity land disposals, as an alternative to fellows or professional associates of the Royal Institution of Chartered Surveyors (RICS).

The regulations will come into force on the same day as sections 19 and 20 of the Charities Act 2022 (ChA 2022). These provisions will:

• Remove the requirement to advertise a proposed disposition of land in line with advice in a report received under section 119 of ChA 2011 (section 19(a), ChA 2022).
• Amend section 119(4) of ChA 2011, to remove reference to regulations being able to prescribe “such information” to be contained within reports prepared for the purposes of section 119 of ChA 2011 (section 19(b), ChA 2022).
• Change the terminology in section 119 of ChA 2011 from ‘qualified surveyor’ to ‘designated adviser’ (section 20, ChA 2022).

The 1992 Regulations will continue to apply where charity trustees have instructed an adviser to prepare a section 119 report before the new regulations come into force.

For more information contact our Commercial Property Team on 0800 088 6004.