Give councils £100 million investment fund to build homes for locals in tourist hotspots
Press release
Embargo date: from 00.01 a.m., Monday 28th August 2023
Give councils £100 million investment fund to build homes for locals in tourist hotspots
Government should give councils direct long-term funding and planning powers to build affordable homes for local people currently priced out of the housing market in tourism hotspots, a new report from Localis has argued.
In a report published today entitled ‘Brightness on the edge of town: how Community Land Trusts can deliver affordable housing’,
Localis calls on government to create a ten-year £100m Community Land Trust (CLT) investment fund to deliver more social rent homes in rural areas overwhelmed by an explosion of second homes and short-term-lets through platforms such as Airbnb.
Funding for Community Land Trusts and other forms of community housing has been discontinued since the abolition of the Community Housing Fund, and the lack of a suitable replacement imperils efforts of communities to come together and provide affordable housing for the benefit of local people.
Otherwise, the think tank warns, there will be nowhere to house those who work to maintain the rural tourism sector – which provides 15% of rural jobs - or provide accommodation to local people without the higher salaries or resources of incomers.
In the study Localis also recommends future planning reforms should redefine affordable housing, putting it on an income-focused approach that would allow councils to locally set the income for affordable housing in their area, based on economic and social circumstances.
Report author, Localis researcher, Sandy Forsyth, said: “While there is much positive work being done to guard rural communities against the negative impacts of over-tourism and the highly pressured housing market in England and Wales, much more is needed.
“With the ongoing cost-of-living crisis more people than ever are in need of genuinely affordable options for housing. Community Land Trusts can provide enhanced community engagement in areas that are becoming increasingly diluted by massive tourist populations, supplying a more holistic, social benefit through the enactment of democratic decision-making and community ownership.”
Localis head of research, Joe Fyans, said: “The current definition of affordable housing does not deliver for rural communities, particularly in areas of high tourist activity.
“It is essential that future planning reforms redefine affordable housing, moving to an income-focused approach where councils have the ability to influence the income level defines affordable housing in their area, based on local circumstances.”
Cllr Kevin Bentley, Chairman of the Local Government Association’s People and Places Board, said: “Affordable homes for local people are essential if we are to build on and maintain our vital tourism industry, particularly in rural areas where housing is even more at a premium.
“Giving councils greater freedoms and flexibilities to be able to build these homes, backed by adequate resources, as this report recommends would revitalise communities in our most popular destinations while safeguarding local jobs and services.”
Tom Chance, chief executive, Community Land Trust Network, said: “More than one hundred communities are trying to build more affordable homes in tourist hotspots, and many are succeeding.
“Homes that are designed and owned locally, and truly affordable to local people, today and forever. This report shows how the government and councils could give Community Land Trusts a shot in the arm to counteract the risk of second home blight."
END
Press enquiries:
Jonathan Werran, chief executive, Localis
(Telephone) 0870 448 1530 / (Mobile) 07967 100328 / (Email) jonathan.werran@localis.org.uk
Notes to Editors:
An advance copy of the report is available for download
https://www.localis.org.uk/wp-content/uploads/2023/08/057_CLTReport_PRF3b.pdf
About Localis
Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism. We carry out innovative research, hold events and facilitate an ever-growing network of members to stimulate and challenge the current orthodoxy of the governance of the UK.
www.localis.org.uk
About the Local Government Association (LGA)
The LGA is the national membership body for local authorities and we work on behalf of our member councils to support, promote and improve local government.
Who are our members?
Our core membership comprises 315 of the 317 councils in England and includes district, county, metropolitan and unitary authorities along with London boroughs and the City of London Corporation. The 22 Welsh unitary councils are in membership via the Welsh Local Government Association.
We also operate an Associate scheme for organisations whose purpose and objectives are aligned with our own. Our Associates include fire and rescue authorities, police, fire and crime commissioners/police and crime commissioners, national park authorities and town and parish councils via the National Association of Local Councils (NALC)’s corporate associate membership.
What is the LGA?
We are a politically-led, cross-party organisation that works on behalf of councils to ensure local government has a strong, credible voice with national government. We aim to influence and set the political agenda on the issues that matter to councils so they are able to deliver local solutions to national problems.
Our improvement offer
The LGA provides a range of practical support, on a free of charge and/or subsidised basis, to enable local authorities to exploit the opportunities that this approach to improvement provides. This includes support of a corporate nature such as leadership programmes, peer challenge, LG Inform (our benchmarking service) and programmes tailored to specific service areas such as children's, adults', health, care, financial, culture, tourism, sport and planning services.
About the Community Land Trust Network
The Community Land Trust Network is the official charity supporting Community Land Trusts in England and Wales. It was established in September 2010 and was initially hosted by the National Housing Federation. It became a registered charity in June 2014. The Community Land Trust Network is a membership body made up of CLTs and supporting organisations from across the country. They work on behalf of CLTs and, in turn, their members shape and govern their work.
CLTN is also part of a broad alliance of organisations promoting and supporting community led housing and land reform in the UK.
About Community Land Trusts
Community land trusts – or CLTs – are democratic, non-profit organisations that own and develop land for the benefit of the community. They typically provide affordable homes, community gardens, civic buildings, pubs, shops, shared workspace, renewable energy infrastructure and conservation landscapes.
In England and Wales they are defined in the Housing and Regeneration Act 2008, s79. They must be set up to benefit a defined local area; be not-for-profit, using all assets, income and surpluses to benefit their community; and allow anybody who lives or works in the area to join them and participate in their governance.
Key findings and recommendations
While the return of a mechanism similar to the Community Housing Fund would be very welcome, a long-term approach to the benefit of the rural communities across the board would be enabling the mainstreaming of CLTs and other community-led housing models through national policy. Policy changes to support the uptake of CLTs and help enable communities to deliver affordable housing in their areas fall into two broad categories: those concerned directly with funding uplift, and those concerned with planning reform.
i. Direct funding
Long-term investment in CLT organisations is required. A ten-year fund to build capacity for enabling organisations at the sub-regional level could see major social returns.
Funding must be restored to local authority planning to solve the housing crisis. There must be a revenue funding uplift for planning across the board to reverse the damage of austerity and return housebuilding to sustainable levels.Rural planning capacity must be built up particularly – either through local fiscal mechanisms or a national revolving fund, councils must be able to uplift their capacity or the housing crisis will continue to exacerbate social issues in these areas.
Support for community housing at a sustainable scale can help all areas access equal opportunity to community-led housing. Subregional hubs to support community-led housing could help facilitate action by both councils and community groups.
ii. Planning reform
The current definition of affordable housing does not deliver for rural communities, particularly in areas of high tourist activity. It is essential that future planning reforms redefine affordable housing, moving to an income-focused approach where councils have the ability to influence the income level defines affordable housing in their area, based on local circumstances.
Neighbourhood planning represents a step forward for localism, but the costs and length of the process must be considered. A review of neighbourhood planning is required, with an examination of capacity funding and the speed of the process.
National planning policies can do more to support communities in getting affordable housing off the ground in their areas. A general priority for community-led housing within the National Planning Policy Framework would greatly aid groups on the ground.
Homes England can be used as an institutional vehicle to ensure effective delivery of community-led housing. Homes England should incentivise collaboration between registered providers and CLTs through grant conditionality, and set rural targets for registered providers to provide social housing.
Current thresholds on affordable housing by development size do not work in rural areas. Planning reform should ensure an affordable housing percentage is required even for small sites in rural areas.
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