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New Revolution for Housebuilding

COMMUNITIES AND LOCAL GOVERNMENT News Release (183) issued by The Government News Network on 17 July 2008

A scheme to deliver more affordable homes for young families and first-time buyers is being set out today by Housing Minister Iain Wright.

Under a new radical amendment to the Housing and Regeneration Bill being debated in Parliament today, new Community Land Trusts (CLT) will be able to cut the cost of getting on the housing ladder as buyers will only pay for the building, not the land, of a property.

CLTs puts communities in the centre stage in agreeing what land should be developed for, including building more affordable homes, as local residents and businesses participate in and take responsibility for planning and delivering development schemes.

Housing Minister Iain Wright said:

"We have to constantly look at new ways to meet the long-term demand for more homes. Community Land Trusts puts local communities at the centre stage of delivering the homes our first-time buyers and young families desperately need.

"They provide an opportunity to give people the practical tools to solve the problem of affordable housing in a way that is right for the community."

The new measure is part of the next steps in the Government's series of further measures and reforms designed to help alleviate the current challenges in the housing market and to support the vital delivery of more homes over the long-term. It is also a big feature of the Government's drive to deliver a fundamental shift in power, influence and responsibility into the hands of communities and citizens.

A CLT is an independent trust which owns or controls the land and facilities, but not the property, for the benefit of the community.

Notes to Editors

1. The Housing and Regeneration Bill being debated in Parliament today.

2. CLTs work by enabling occupiers to pay for the use of buildings and services at prices they can afford, while the value of land, subsidies and other equity benefits are permanently locked in, on behalf of them and future occupiers, by the Community Land Trust.

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