If approved, it means that locals campaigning to save the Red Lion in Sidbury will have six months to raise funds to buy the pub.
The property was put up for sale three months ago, and is the only pub in the village of 800 people.
Save the Red Lion Campaign chair Fred Burnett said that once the pub is granted ACV status by East Devon District Council, the group will then explore whether a viable business plan will be put in place.
“This is a significant first step being taken by a concerned village community to save their pub,” said Burnett. “Once East Devon District Council agrees to list the Red Lion as an asset of community value then that places a stop on Punch Taverns selling it for the time being.
“After the Red Lion is listed by the local authority, the Save the Red Lion Campaign will start the process of exploring whether a viable business plan and financial structure can be put in place to not only purchase the property on behalf of the community, but also fund its refurbishment and then launch it as a pub at the heart of the village.
“The campaign is confident that a viable business plan can be constructed.
“We have willing and experienced local campaigners who see the potential in a successful future for the Red Lion.
“We are determined to take all the necessary steps to save the Red Lion for the local community.
“To assist the community campaign in undertaking the work that will determine whether it should go on to seek to purchase the Red Lion pub site on behalf of the village, it has applied for significant grants that are currently available from several sources, including the Department for Communities & Local Government.”
The campaign’s patron Hugo Swire MP gave his support to the group seeking an ACV for the pub.