The Community Land Trust Network (CLTN) is calling on the government to use the windfall to strengthen affordable housing delivery by investing in community-led housing
The Community Land Trust Network (CLTN) has called on the Competition and Markets Authority (CMA) to use the fruits of a recent investigation into seven major housebuilders constructively, by reinvesting the £100m windfall into community-led housing to boost housing diversity and tackle rural and regeneration gaps.
Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry were all investigated for potential anti-competitive practices in the housing market, such as discussing sales pricing and buyer’s incentives.
The payment was offered along with legally binding commitments
Whilst none of the companies investigated have admitted culpability or liability for the accused activities, the windfall offer would bring an end to the investigation, as there would no longer be a requirement for the CMA to determine if the law was breached.
Tom Chance, chief executive of the Community Land Trust Network, said:
“We believe the CMA should see this investigation through to its conclusion. But if the settlement is accepted, then this money must be used to diversify the housing market and tackle gaps the market leaves behind. Community-led housing focuses on long-term community benefit, so it can take on sites that mainstream developers often overlook.
“With the right support, these projects can complement the wider market and bring forward homes that would otherwise never happen.”
The case for investing in community-led housing is clear, argues the CLT, citing that:
- The last Community Housing Fund round (£4m in 2021/22) funded 52 projects and 1,263 homes – but was oversubscribed by 70% within weeks of opening
- CLTs often act as delivery partners for housing associations and developers, building local trust and unlocking hard-to-develop land
The CLT also suggest that CLT homes stay affordable in perpetuity.
Tom Chance continued: “Councils and housing associations want these partnerships, but the funding is missing. Directing this windfall into community-led housing would unlock thousands of homes and strengthen the Affordable Homes Programme.”
