Community Land Trusts
The ‘’Right to Buy” scheme should be replaced with a system that reinvests in social housing, and one that also aids the “Help to Buy” scheme. A community land trust (CLT) may be the answer to this system which we need.
A CLT is a form of housing provision, which offers a lateral, community-based (and more reasonable) approach to home ownership rather than the traditional top-down commercial structure that we are accustomed to. For this to work, a non-profit organization, the CLT, holds and develops land on behalf of the wider community it belongs to. This can be in the form of community gardens, pubs, shared workspaces or in this case, housing. The underlying purpose is that the CLT is run by the community, for the exclusive benefit of that very same community, through multiple stakeholders such as local developers, the local authority and local charities. This system could be an answer to saving any given local authority from taking on all the risk on their own housing stock, and maintaining a balance between the public and private sector.
In May 2023, the BBC published an article of this approach in practice. Citizens House, located in Lewisham, is a 4-storey housing development where each of the 11 properties has its prices set relative to the income levels of the local population. The article focuses on Alex, who had spent the past 18 years living in some form of rental or temporary accommodation. Due to the fair nature of Citizen’s House’s pricing policy, Alex was able to purchase one of the 11 units for £215,000, 35% cheaper than similar housing stock nearby. Alex broke the cycle of perpetually spending his salary on rent, and instead, invested this money in his own flat, providing stability, security, an affordable way to live, all without being priced out of the area he already knows as home.
Citizens House was developed with the help of about 500 locals, the local authority Lewisham Council, the Greater London Authority and London CLT. These stakeholders were involved in the decision making processes like design, planning and sale prices. Alex, amongst others qualified to purchase these properties because they have maintained a connection with Lewisham (through living or working) for the past 5 years, qualified for a mortgage and demonstrated a genuine need for affordable housing.
The article also describes that these properties are safeguarded through independent panels deciding on eligibility, fixed prices to ensure that properties are not treated as a commercial investment and an “‘asset lock” which means that units can only be sold on the same terms on which they are bought.
Can the rest of London Follow Suit?
London has seen a transformation with its new-builds, as well as its suburban areas, which are also seeing the rise of luxury flats, 'build-to-rent' While these modern living spaces, complete with co-working areas, bars, and gyms, offer great amenities, they do not address the crucial issue of housing affordability, and the security and peace of mind that comes with it.
The rest of London should consider adopting CLTs similar to Citizens House, given the positive impact it has had on people like Alex. Perhaps the Council and local developers can explore a social method such as this, whilst still pursuing a profit. This balance could provide affordable housing and prosperity for all residents, creating a more equitable and vibrant community.
