DISTRICT councillors will find themselves in uncharted waters next week after the owner of Monksilver pub the Notley Arms challenged the authority's decision to list the inn as a 'community asset'.

Owner Colin Wilkins has accused West Somerset Council of acting illegally and claimed to have lost a potential buyer for the pub after villagers invoked new laws introduced under the Localism Act 2011.

The aim of the Act is to give communities greater powers to protect village amenities like shops and pubs from being turned into housing by giving local people first refusal when they are put up for sale.

If a premises is accepted by the district council as a 'community asset' then it cannot be sold on the open market unless the community is given the chance to buy it first - or unless the business is sold as a going concern.

However, business owners have the right to appeal any listing decision and to claim compensation from the authority if they feel they have lost money as a result of a listing.

On Monday, members of West Somerset Council's scrutiny committee will be asked to consider a decision to list the Notley in light of Mr Wilkins' objection.

In a letter to the council, Mr Wilkins branded the listing as "tripe" and doubted the legality of the legislation.

He claimed he had not been properly consulted and wanted the council to pay the charges he had incurred for marketing the Notley Arms with an estate agency.

He said he believed the pub was now effectively unmarketable and he could be forced to auction off the contents, leaving the property "void and unrateable".

The Notley was nominated for listing by both Monksilver Parish Council and a separate community group.

The business underwent a major refurbishment but closed it doors less than 12 months later in September this year.

The parish council said the Notley was a much loved inn and had been a very successful business.

"The community is desperate to have the pub trading again but its future is threatened by the stated wish of the owner to sell it as a residential property," the council said.

Members of the Monksilver Action Group said the pub was a local landmark and a great rural meeting place.

In his letter, Mr Wilkins said he would never consider selling the pub to the parish council, which he blamed for the loss of a potential buyer.

But he said he still had two parties showing an interest in the property and urgently wanted a review of its listing as a community asset.

"I don't believe that this is legal on a commercial property and I cannot believe that in the present and current economic climate that this could happen, or are we talking about more bad law?" Mr Wilkins wrote.

Under the Act, any parish council or community group with more than 21 members can nominate land or buildings as 'assets of community value'.

Community assets can include pubs, village halls, shops and recreation grounds, but cannot include properties deemed to be 'wholly residential'.

If a building or land is accepted by the local authority as a community asset, nothing happens until the owners decide to sell.

Unless an exemption applies, such as the land or building being sold as a going concern, the owner must then give first refusal to the nominators.

The parish council or group then has six weeks to decide whether to submit a bid to try and buy the asset for the community.

If no bid is made, the owner is free to sell the asset on the open market.

However, if a bid is received, a six-month moratorium is put on the sale to give the community group or parish council time to try and raise the necessary funds to purchase the asset.

After the six months has lapsed and if no offer to buy has been made, the owner is then able to market the asset on the open market - but only for a limited time of 12 months.

If no buyer is found within that time, the whole process begins again.

Scrutiny members will be asked to review the council's decision to list the pub as a community asset but will also be warned there is no official guidance on what factors they need to take into account when undertaking the review.

Officers will advise committee members to base their decision on whether the listing complied fully with the criteria laid down under the Localism Act 2011.

Sam Rawle, the council's scrutiny and performance officer, will tell the committee: "The options open to the committee are to either confirm the inclusion of the Notley Arms on the list or to remove the entry and to give reasons for such removal."

If Mr Wilkins remains in disagreement with the council following the review, he will still be able to appeal the decision at an independent tribunal.