New £8.5 million pilot fund to help communities deliver discounted homes

From Monday 13 May volunteer groups are able to apply for between £10,000 and £50,000 to help identify suitable sites for discounted homes, get planning permission for them and to provide other technical support. Further free specialist advice and guidance will also be made available for those who participate in the pilot programme.

The Ministry of Housing, Communities and Local Government (MHCLG) has created a budget of £8.5 million for the 3 year pilot project which will help provide cut-price homes for younger people and families in need of housing, through locally-led neighbourhood plans.

Discounted homes are properties built for people to buy at affordable rates, allowing them to secure mortgages in areas of the country where they are currently locked out of the market by high prices. For example, a 3-bed home from the Cornwall Community Land Trust was recently sold at a discount for local people, for a price of £160,000, which is compared to an average property price in the county of over £230,000.

The pilot project will run from 13 May 2019 to 31 March 2022. Government will review the outcomes of the pilot in January 2020 to inform arrangements for future years.

The new funds can be applied for via MHCLG’s third-party support provider, Locality, where further information can also be found.

The government press release about the pilot fund can be found on the GOV.UK website.

Image: Cornwall Community Land Trust builds affordable land for local people