The announcement promises money for local communities to gain more power in housebuilding
Communities will be able to have more say in the location, design, and quality of developments via the £20m housing package.
The investment comes as part of the Plan for Change and the 1.5m new homes target.
The £20m housing package could cover thousands of homes
The package is intended to boost community-led housing by funding community groups, land trusts, and housing co-operatives. This investment is predicted to support 2,500 new homes across the next 10 years.
The power given to communities will allow housing to be built to directly address local needs. The powers given will affect the design and location of new homes, and will allow access to land and planning permissions that speculative developments can’t touch.
This approach is unique, and is the first time that local people will have a say in housing schemes of this scale. The £20m housing package is intended to overcome financial barriers that community housebuilding groups normally face. The money will be placed into a social finance fund, and will be led by Resonance due to their experience in working with communities.
Much needed support for community housing
Community-led housing is considered to be under-developed in the UK, struggling to deliver housing and damaging the 1.5m new homes target.
Housing and planning minister, Matthew Pennycook, said: “Community-led housing not only delivers social and affordable homes for local people, it also gives local communities a greater say on where new homes are built and how they are designed.
“This investment will help community-based organisations overcome barriers to housing delivery and will support the growth of the community-led housing sector.
“Through our Plan for Change we are boosting housing supply and reforming the housing system, delivering on our commitment to the biggest increase in social and affordable housebuilding in a generation.”
Head of developing communities at Resonance, Jon Rolls, said: “This is a landmark moment for our fund and for the community-led housing movement. MHCLG’s investment will act as a vital catalyst, unlocking more support for communities determined to shape their own futures. It’s simple – when communities are in the driving seat, brilliant things happen.”
Chief executive at the Community Land Trust Network, Tom Chance, said: “This investment will be welcomed by hundreds of communities working to build thousands of much-needed homes, from tourist hotspots where local are priced out to city neighbourhoods blighted by a lack of investment. Community-led development offers local people a tool to be builders rather than blockers.”
