A lack of genuinely affordable homes is the crisis of our time, with the cost of home ownership being out of reach for far too many. The current entry level price of a one bedroom flat in Croydon is around 200,000. To purchase this would require a deposit of 30,000 and an annual income of 42,000 (assuming a mortgage agreed of 4 times income).
I’m proud to be working with local community organisations & the Leader of Croydon Council, Cllr Tony Newman, on one solution which could help address this situation, a plan to develop a community landtrust.
What’s a community landtrust and why will it help Croydon?
A community landtrust is a non-profit, membership organisation, run by local people, that develops permanently affordable housing and other community assets for long-term community benefit. In London, it is estimated that more than half the cost of a home is the cost of the land it is sitting on. On a CLT the community own that land. This means that the CLT is able to remove the unfair inflationary considerations of land values and sell the home for a much lower price. Instead, the CLT can link the cost of housing to local earnings, ensuring that people are no longer priced out of the neighbourhoods they grew up in and the homes remain affordable for generations to come.
What’s the next step?
Searching for possible locations for the community landtrust across Croydon and bringing community members, developers and council together to form a clear plan.