It is often difficult for people to find a suitable and affordable home in their local community. Community Land Trusts (CLTs) seek to address this problem by creating affordable housing and community resources through the co-operative ownership of land by the local community. Land is acquired by community groups (usually below its market rate) through public investment, planning gain or philanthropic or charitable gifts and is held in perpetuity by the local community. The value of the land (plus subsidies and other equity benefits) is permanently locked in, on behalf of the local community and future occupiers, by the CLT.

It has become clear that CLTs across the UK are encountering two barriers that prevent their ideas from becoming reality:

• a lack of technical support in preparing development and business plans 
• a lack of access to risk capital

The Esmée Fairbairn Foundation and the Tudor Trust are the first contributors to the Community Land Trust Fund, initially standing at £2 million, which is intended to support the development of around 30 operational Community Land Trusts, and the construction of around 150 affordable homes, over the next four years.

Reflecting the different stages of establishing and developing a Community Land Trust, the overarching Community Land Trust Fund has been split into three separate funds:

The Feasibility Fund – to provide community groups or fledgling CLTs with one day of consultancy support and guidance around establishing their CLT.

The Technical Assistance Fund - to provide grants of up to £2,500 to CLTs or emerging CLTs to employ a consultant or consultants for up to five days in order to develop their initial ideas into a comprehensive business plan.

The Investment Fund - to provide secured and unsecured loans to eligible CLTs.

Download the Community Land Trust Fund leaflet for more detail on the CLT model and detailed guidance on the operation of the three different funds.