The concept is to be able to produce more properties which are affordable within London.
Transport of London are releasing 10 development sites, one which will be in Lambeth and one will be in Tower Hamelts, as they have been selected for Community Land Trust.
Catherine Harrington, who is the director at the National CLT Network, said:
“We are delighted to hear that the Mayor of London has recognised the potential of Community Land Trusts as a way of developing genuinely affordable housing.
The increasing prices London is struggling with are tearing communities apart and seriously threatening the fabric of the city.
The mayor has already invested £250,000 in the creation of a community-led housing hub for London. Along with this pilot, we’re hopeful and excited about the future and the difference that CLTs can make to the market – we want to see a CLT in every community.”
The average wage will fail to compete as the cost of properties continues to rise, which means the number of people who are unable to afford a house will rise.
Community Land Trusts have offered a unique method to solving the UK’s affordability predicament.
Community Land Trusts (CLT) want to set up a permanent and
affordable solution, for people who live within the city, who wouldn’t have had enough money to afford their own property any other way.
CLT are directed by a community of people who are doing their best to support the country’s affordability problem.
Homes will be built within the CLT’s area, and will be priced based of what people earn within that area.
The first new-build CLT home was completed in Tower Hamlets in 2017. There were 23 properties built in total, which were rented out and sold at a third of the average cost within that area.
For example, a two bed flat was sold at £182,000 compared to the average £550,000 sale price for a similar property within the same area.