Stable Housing Prices through Community Land Ownership: Achieving Affordable Homes
Community Land Trusts (CLTs) are becoming a significant force in the community-led housing movement across the UK, particularly in England and Wales, aiming to address housing affordability challenges.
### Current Status of CLTs in England and Wales:
As of 2020, there are approximately 350 active Community Land Trusts (CLTs) in England and Wales, managing around 26,800 community-led homes. This represents about 1% of the housing stock in England. The sector is expanding, with an additional 21,700 homes in development planned over the next decade. With appropriate support, the CLT Network estimates the potential to develop up to 278,000 community-led homes in the UK.
Examples of successful CLT projects include Hastings Commons, which received £1.5 million funding to develop 12 flats, primarily for families in temporary accommodation, and Calder Valley CLT, focusing on affordable rented homes in the Upper Calder Valley.
### Impact and Role in Housing Affordability:
CLTs secure land and housing in perpetuity, ensuring that homes remain affordable despite fluctuations in the broader property market. These trusts provide long-term affordability by directly owning the land and leasing it to residents under secure tenancies.
CLTs address issues such as escalating property prices and restricted housing supply by offering alternatives to market-driven housing. The community-led housing model emphasises quality, affordability, and community control, supporting local residents through housing solutions tailored to local needs.
CLTs often work in partnership with local authorities and receive funding to develop affordable housing stock for vulnerable groups, addressing housing insecurity and homelessness.
### Financing CLTs:
Financing CLT homes can be a hurdle due to the initial costs for architectural designs, land surveys, and planning permission. However, CLTs can secure loans like any other social enterprise or individual homebuyers. The Community Housing Fund is a crucial financing instrument for community-led housing schemes, and the Network is working towards its renewal. The Community Land Trust Network and its partners offer advice on financing CLT projects.
Despite these challenges, initial costs still present a hurdle for CLTs, and misconceptions about their funding don't make things easier.
### CLT Governance:
CLTs are managed by a board consisting of CLT members who consult with experts and members of the wider community. They can acquire land through various means, including regular purchase, discounted rates, donations, and land disposals by government entities.
CLTs maintain genuine affordability over decades through individually designed resale formulas. They are protected from being sold on the general market due to an exemption from the voluntary Right to Buy.
### The Future of CLTs:
The Community Land Trust Network encourages the establishment of non-housing related CLTs, like groups developing village halls, community pubs, and exploring wildlife and agricultural uses. The Network aims to mainstream the CLT movement and ensure every community that wants a CLT has one.
Many people underestimate the power of CLTs, thinking they are solely community groups and questioning their access to funding. However, each £1 invested in community-led home projects results in at least £1.80 of benefit.
In conclusion, Community Land Trusts in England and Wales are a growing community-based solution to housing affordability challenges. They retain land ownership in community control to keep homes permanently affordable, presenting a sustainable alternative to speculative market housing. With ongoing growth and government support, CLTs have the potential to significantly contribute to increasing affordable housing supply and alleviating housing pressures in the UK.
- The Community Land Trust (CLT) Network estimates that with appropriate support, the potential to develop up to 278,000 community-led homes in the UK could be realized, addressing housing affordability challenges and offering alternatives to market-driven housing.
- CLTs, such as Hastings Commons and Calder Valley CLT, secure funding for projects, often in partnership with local authorities, to develop affordable housing stock, which provides long-term affordability through ownership of the land and secure tenancies.
