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Pennycook confirms £20m to boost ‘community-led’ housing push
The government has confirmed that £20m will be pumped into a fund to help community groups build more affordable homes.
The government has confirmed that £20m will be pumped into a fund to help community groups build more affordable homes #UKhousing Matthew Pennycook, the housing minister, said today that the package was expected to “directly support” the building of more than 2,500 homes over the next 10 years.
The funding is honouring a commitment from the previous government, as Jeremy Hunt, the chancellor of the exchequer at the time, pledged £20m in principle to help fund community-led housing schemes in last year’s March Budget.
The £20m is going to Resonance, a property fund manager whose investments include community land trusts and housing co-operatives.
The Ministry of Housing, Communities and Local Government (MHCLG) is also hoping its investment will attract “up to” £30m in match funding from the private sector, councils and combined mayoral authorities.
Mr Pennycook said: “Community-led housing not only delivers social and affordable homes for local people, it also gives local communities a greater say on where new homes are built and how they are designed.
“This investment will help community-based organisations overcome barriers to housing delivery and will support the growth of the community-led housing sector.”
It is not immediately clear if the £20m is newly announced money.
A report last year from the Community Land Trust Network (CLTN) found that 913 homes had been built or were under construction under the previous government’s Community Housing Fund, while more than 3,000 were in the pipeline.
The report said around 90% of the homes were affordable, with many located in areas that are difficult for developers, such as national parks and small infill sites.
On the latest funding, Tom Chance, chief executive of the CLTN, said: “This investment will be welcomed by hundreds of communities working to build thousands of much-needed homes, from tourist hotspots where locals are priced out, to city neighbourhoods blighted by a lack of investment.”
Jon Rolls, head of developing communities at Resonance, described it as a “landmark moment” for its fund and the community-led housing movement.
“MHCLG’s investment will act as a vital catalyst, unlocking more support for communities determined to shape their own futures,” he said.
Resonance’s other interests include tackling homelessness. In January, Resonance’s National Homelessness Property Fund 2 received £30m from Gloucestershire Pension Fund, which is part of the Local Government Pension Scheme.
MHCLG’s announcement comes amid a flurry of announcements ahead of tomorrow’s Spring Statement.
Earlier today, the Treasury confirmed an extra £2bn in grant funding to build affordable homes as part of a bridge to the next grant programme.
Yesterday, Rachel Reeves, the chancellor, pledged £600m to tackle Britain’s construction skills shortage in a bid to hit the government’s target of building 1.5 million new homes.
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