Communities affected by second homeownership to benefit from £60M fund

New annual fund to help almost 150 councils tackle the problem of high levels of second homeownership in their communities.

With second homeownership at an all time high the market for first time buyers has become over saturated which is leading to a shortfall in available properties and is effectively pricing buyers out of the market. The government has been studying the impact this has been having on the housing market and is today announcing a new £60M fund which will help 150 councils across the UK deal with this growing problem.

Second homeownership often means properties standing empty for large portions of the year, which not only artificially inflates housing price figures due to lack of availability but also affects community cohesion.

The Community Housing Fund will help deliver affordable housing aimed at the first time buyer market with almost £20M going directly to local authorities in the South West, the region most severely affected by second homeownership.

Housing Minister Gavin Barwell said: “The high number of second homes can be a frustration for many who struggle to find an affordable home in their community.

“This new fund will help tackle that by boosting supply and make sure community groups are at the heart of delivering new homes so that this is a country that works for everyone.

“I saw for myself the great work community land trusts do on a recent visit to Cornwall and we want them to do much, much more.”

Funding being allocated directly to housing associations allows them to focus on the type of properties required in each individual area and gives them an opportunity to set up hubs which will offer advice and business planning to review local housing needs. In the first year the fund will be utilised to build capacity within local groups and allow them the opportunity to improve things such as technical skills. Local authorities will then work with these local housing groups to ensure delivery in subsequent years.

By using this method of delivery it helps to alleviate local concerns about building new homes and often planning permission is granted more quickly. These groups also provide a level of credibility and forge an important link between local authorities and the community.

Catherine Harrington, Director of the National Community Land Trust Network said: “We are delighted that the government is backing community-led housing with this new fund. Every few days a new community-led housing provider forms to take housing into their own hands, providing homes that are affordable to local people. This fund could triple the 3,000 homes that Community Land Trusts alone already have in the pipeline.

“We are now looking forward to working with local authorities to help them use the funding in the way it is needed most and develop a strong community-led housing sector in their area.”

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