The document summarizes information about community land trusts (CLTs), including their objectives to provide affordable housing and community benefits in perpetuity. It outlines how CLTs acquire land, some of the challenges they face, their legal status, and sources of support available. CLTs take a variety of forms but generally aim to meet local housing needs while retaining affordable access and community control over land and buildings.

1. Community Land Trust website
 www.communitylandtrust.org.uk
 The latest news
 Case studies
 Document library
• The basics
• Policy
Community Land Trusts
• Finance
• Planning permission
in a nutshell
• Governance and legal models
• Disposal methods
 Publications and reports
 Other sources of help
 Discussion forum http://communitylandtrusts.ning.com
the design and print group www.ils.salford.ac.uk/media (28107/09)
Community Finance Solutions
School of ESPaCH
University of Salford
Crescent House
The Crescent
Salford
M5 4WT
T: +44 (0)161 295 4454
F: +44 (0)161 295 2835
E: j.aird@salford.ac.uk
www.communityfinance.salford.ac.uk An initiative of
www.communitylandtrust.org.uk

2. Community Finance Solutions an initiative of the University of Salford Community Finance Solutions an initiative of the University of Salford
What is a Community Land Trust (CLT)? How does it acquire land? What challenges do CLTs face? What is the legal status of CLTs?
 A CLT is a nonprofit, community-based  The CLT may acquire land at open market value,  The model is seen as an ‘innovation’ and is  A legal definition of a CLT was included in the
organisation committed to the stewardship and where there is access to grant funding therefore treated with caution Housing and Regeneration Act 2008 – see
affordability of land, housing and other buildings  Land/buildings may be transferred from a public  Local authorities may be suspicious of www.communitylandtrust.org.uk for the wording
used for community benefit in perpetuity. authority at less than market value or for no cost community’s motives in restricting homes for local  CLTs are usually constituted as Industrial &
 CLTs take a variety of forms: they may build on  Land may be acquired at agricultural value through people only Provident Societies or Companies limited by
existing organisations such as development trusts the exception planning system  There is also the perception that ‘community- Guarantee, have charitable status, and are
or almshouse associations; they may have a very  A CLT may offer to meet a developer’s section 106 control’ means ‘hijacked by vested interests’ non-profit
small area of interest, or cover an entire city; they obligation to provide affordable units and so  Local resistance to ‘affordable housing’ – based
may manage a handful of properties or an estate acquire properties which are part of a larger on the perception that it will mean the imposition What support is available?
of 1000s of units; properties may be on a rental, development of social housing tenants
shared-equity ownership, co-operative basis or  A CLT may already own land which is capable of  Mortgage lenders and financiers object in  Community Finance Solutions have been
even sold on the open market (cross-subsidy). receiving planning permission principle to the cap on resale price developing expertise and recording best practice
 They generally have in common the aims of  A CLT may raise funds to purchase a site through a  A mortgagee in possession clause gives banks on CLTs for several years – there is a wealth of
meeting local housing need and providing community share issue (ie people buy shares in the security of knowledge that they can repossess the tools and guidance on
community benefit. trust) – for instance in Scottish island buy-outs and house in case of a default, but contradicts the CLT www.communitylandtrust.org.uk
 Where CLTs are used to provide affordable housing Fordhall Farm principle of stewarding homes in perpetuity  CFS jointly with the Tudor Trust, Esmee Fairbairn
they sell an equity share in properties and thus and Venturesome have launched a CLT Fund
restrict their value to the homeowner. This unsold What are the benefits of CLTs? Is it a tried and tested model? which communities in England can apply for.
equity is used to ensure the property remains http://www.esmeefairbairn.org.uk/significant-
affordable to benefit others in the community.  CLTs are able to meet local housing need even in  The CLT model has been developed in the US, and cltdf.html
rural areas with very high house prices the movement has grown to include over 250  There are a number of regional support
What are its objectives?  By retaining an equity share in each property, different CLTs across the country organisations and umbrella CLTs around the
they provide affordable housing which remains  In the UK, there are antecedents in the planning country – contact j.e.powell@salford.ac.uk at CFS
 CLTs have a wide range of possible objectives, such affordable in perpetuity, therefore benefiting many and garden city movement, for instance for more information
as: providing small pockets of affordable rural generations of residents Letchworth Garden City
housing; creating a permanent intermediate  They are locally-controlled and democratically  CLTs also share many principles in common with Piloting the Community Land Trust model
housing market; providing workspace, community accountable the co-operative movement, which have been
facilities or greenspace; regenerating a  They do not require as much public investment as operating in the UK for hundreds of years Community Finance Solutions (CFS) is an initiative of
neighbourhood without displacing the community; forms of affordable housing provided by housing  Almshouse trusts have been stewarding housing the University of Salford and has worked to promote
creating a balanced mix of housing tenures. associations for the poor for centuries the Community Land Trust model and provide
 They generally aim to exist for a very long time  They aim to become self-financing and to end  Similar models include Community Farm Land practical support to communities since 2005. CFS
in order to safeguard the affordability and reliance on public grants Trusts (to preserve farmland for a community) and has been particularly supported by Carnegie UK
stewardship of the housing or other assets in  They can provide community-based organisations Conservation Land Trusts (to preserve natural Trust and the Department for Communities and
perpetuity. with an asset to give them financial security and habitats) Local Government and is now in the process of
enable long-term planning  In Scotland there have been hundreds of developing an official trade body for CLTs in
 They can generally step in at every re-sale to community buy-outs of land, housing, woodland, England.
enforce affordability restrictions or prevent mountains and other facilities and which have
repossessions, thus helping to create a more stable been funded by grants from the Big Lottery Community Land Trust website
housing market munitylandtrusts.ning.com
 Each homeowner gains an equity share in the
property, as well as a stake in the wider community
And many more...