FAQ Category: Affordability & Rent

How does the CLT ensure that homes are prioritised for local people?

If the Community Land Trust builds on an exception site (i.e. a site adjacent to the community’s settlement boundary where housing development would not normally be permitted), then a legally binding planning agreement (known as a Section 106 Agreement) is that the homes must be prioritised for local people. It is only on this condition […]

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How can we be sure that the houses will remain affordable homes?

Planning permission for affordable homes on land such as this is subject to a special planning condition – known as a Section 106 Agreement – which restricts occupancy to people with a local connection. In addition, ownership of the land remains with the CLT, who will enter into a lease agreement with a housing association under a 125-year lease. […]

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How is the level of rent set?

Rent will be affordable at a local rate – usually 80% of the open market rate for similar properties, or the Local Housing Allowance (whichever is lower).

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What is an affordable rent?

If the capital grant needed to subsidise the build cost comes from the Government’s Homes & Communities Agency, rents would be set at 80% of the market rent for properties of similar size or at the local housing allowance, whichever is the lower amount. If the grant comes from the community (Rents in Dalwood are […]

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Would tenants have affordable housing?

Yes the rents would be set at the most affordable rents that the CLT can do after looking at which grants to apply for. The CLT will look at all options and find the most affordable rent they can.

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