CLTN reviews the impact of the Community Housing Fund in building affordable homes

[edit] Background to the Community Housing Fund

The Community Housing Fund (CHF) was first announced in the 2016 Spring Budget, with the pledge of £60m per year for five years. Between 2016 and 2022, a total of £240m was distributed or offered to councils, community groups and regional enablers, via councils, Homes England, the GLA and the Community Led Homes partnership. But only a small portion of that was drawn down and spent due to stop-start programmes with very short funding windows, unsuitable for housing projects that take an average of 6 years.

[edit] New review confirms success of Community Housing Fund in driving affordable housing

In September 2024, a review conducted by the Community Land Trust Network revealed the positive impact of the Government’s Community Housing Fund (CHF) in building affordable, community led homes across England.

The review, which was aided by the Ministry of Housing, Communities and Local Government, and Homes England, analysed more than 200 housing initiatives funded by the CHF, demonstrating significant progress in delivering affordable homes.

The CHF – which CLTN and its members secured in 2016 after a successful campaign - was introduced to support community led housing models such as community land trusts, cohousing, and housing cooperatives, and provided grants to help groups secure sites and planning permissions. This enabled these projects to later access mainstream financing and deliver much-needed homes, particularly social rent homes.

The full review can be downloaded here Community Housing Fund Delivery Review September 2024 With thanks to the Ministry of Housing, Communities and Local Government for contributing to the cost of this research; to our core funders the Esmee Fairbairn Foundation and Nationwide Foundation for supporting our work in this area; to Owen Jarvis of the UK Cohousing Network for assisting our time with data collection; and to all of the community led housing groups, enablers, partners, Homes England and the GLA who provided data.

[edit] Key findings of the review

A growing affordable housing pipeline: The review identified that 4,222 homes have been developed or are in the pipeline, with 913 homes already built or under construction. Notably, 90% of these homes are affordable, with many located in areas typically challenging for developers, such as national parks and small infill sites.

Promotion of innovative housing models: Projects funded through the CHF were more likely to incorporate Modern Methods of Construction (MMC) and offer self-build or custom-build options than industry averages, underscoring the fund’s role in promoting creative and sustainable housing solutions.

High success rate and value for money: According to the review, 95% of funded projects have succeeded or are still making progress, with only 5% failing, highlighting the CHF’s efficiency in delivering high-value outcomes. The grants provided crucial early-stage support, enabling projects to attract mainstream funding and achieve impressive returns on public investment. Previous research shows that for every £1 of public money spent on community-led housing, £2.70 in value was created.

The review also offers recommendations for future government investment, emphasising the importance of targeting funds to boost the development of social rented homes while ensuring cost-efficiency.

[edit] A call for further investment

Tom Chance, CEO of the Community Land Trust Network, commented on the findings, saying:

“This review shows that the government can stimulate more social housebuilding at a low cost by backing community led housing. It can also diversify the housebuilding industry, which is needed to achieve the target of 1.5 million homes by the end of this parliament.

“Through our new campaign, we are calling for planning and land reforms, new funding, which this review demonstrates is crucial, and regulatory reforms. The Labour government has the potential to unleash a movement that provides additional housing, boosts community cohesion and strengthens the co-operative economy.”

The Community Land Trust Network is calling on its members and supporters to lobby their MPs and ask for supportive CLT policies and funding. More information and a suite of template documents for you to use can be found here.

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