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More than 20,000 community-led homes at risk if government fund is not renewed, says CLT body
Roughly 23,000 community-led homes risk not being built if the government does not renew the Community Housing Fund (CHF), a report from the National Community Land Trust (CLT) Network has warned.
According to the report, nearly 900 community-led housing groups are currently developing homes across England and have a combined pipeline of 23,000 homes, with the National CLT Network raising concerns that these could be halted if more money is not found.
This pipeline is almost four times the estimate from three years ago, which found that 5,810 community-led homes were being brought forward by 203 different groups.
An estimated £260.5m outside of London is now required to see these homes built over the next five years, the report found.
New community-led housing projects have been facilitated through the CHF, which provided grants to housing projects managed specifically by community groups.
First announced in 2016, the fund was originally supposed to be worth £60m annually for five years. However, the fund did not open until July 2018 and closed at the end of last year.
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In January, Inside Housing reported that several CLTs across the country had been left in limbo after Homes England unexpectedly withdrew funding that they were told they would receive through the CHF. This led to some CLTs owing companies large sums of money and having to renegotiate loans.
This was because the part of the fund that was used to support the development of community-led housing proposals, including architect fees and feasibility studies, was fully allocated before the CHF’s closing date.
The National CLT Network is now calling for the CHF to be extended for a further five years as part of next week’s Budget.
Catherine Harrington, co-chief executive of the National CLT Network, said: “The community-led housing movement is waiting with bated breath. If the CHF is not extended in the Spring Budget it would have devastating consequences.
“As our new research shows, the 18 months that the fund was open have rapidly expanded the community housing movement. Nearly 1,000 groups have projects, many of which are ‘oven-ready’.
“These are affordable homes that are backed by the community and are unlikely to be built by traditional developers.”
A spokesperson from the Ministry of Housing, Communities and Local Government said: “The government is committed to supporting community housing as we deliver more than one million much-needed new homes over the next five years.
“Further funding for the Community Housing Fund will be considered as part of the government’s spending decisions.”
