Government warned leasehold reform could jeopardise community led housing

A housing organisation has warned that the proposed leasehold reforms could negatively impact the community led housing.

The National Community Land Trust Network (NCLTN) has urged the Government to make community led housing exempt from the changes, stating that otherwise, the vital construction of new homes could be endangered.

Currently, Community Land Trusts retain control of the land through a lease. This leasehold enables properties within the CLT to be priced in alignment with local incomes, ensuring that prices remain affordable for residents.

With an aim to protect community led housing and the benefits that it brings, the NCLTN have called for it to be exempt from the ban as well as UK Cohousing. The organisation has also suggested that a Public Interest Leases Code of Conduct should be introduced, promoting best practice in the leasehold market.

Highlighting the benefits of Community Land Trusts was Catherine Harrington. The director of the National Community Land Trust Network stated: ‘Community Land Trusts have played no role in the exploitation of leasehold. While we support the consultation’s goal of addressing the unfair and unreasonable abuses of leasehold by developers and private investors, CLTs are one of a few approaches using leasehold to deliver genuinely affordable housing.

‘That’s why we are calling for the government to exempt CLTs and other affected community led housing models from this proposed ban. CLTs are a form of community led housing, set up and run by ordinary people who want to help people in housing need.

‘It’s the fastest growing housing model in the UK. We hope other responsible housing providers will join us to campaign for a Code of Conduct for Public Interest Leases.’

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