FREQUENTLY ASKED QUESTIONS
Index
1. What are Community Land Trusts?
2. What is Colerne Community Land Trust?
3. What is a Community Benefit Society?
4. What is community-led development?
5. What is affordable housing?
6. What will make Colerne CLT homes affordable to live in?
7. How will Colerne CLT homes be funded?
8. Who will acquire the land and own it?
9. How will the housing be managed?
10. Who will live in the homes?
11. What can a CLT do that a market developer or housing association cannot?
12. What is a Rural Exception Site?
13. What planning restrictions will determine the type of housing built?
14. What effect does the National Planning Policy Framework (NPPF) document have on CLTs?
1. What are Community Land Trusts?
Community Land Trusts (CLTs) are democratic, community-led, not-for-profit organisations that own and develop land for the benefit of the local community.
All CLT land is held in trust in perpetuity for the benefit of the local community; it cannot be sold or otherwise disposed of.
CLTs have been a world-wide movement since the late 1960s. Most CLTs aim to provide affordable housing for their community.
CLTs in England and Wales have:
- been active since the 1970s; there are now over 300 working CLTs
- a total of 17,000+ members
- built 2,015+ affordable homes
As well as developing affordable homes, CLTs also provide community gardens, civic buildings, pubs, shops, shared workspace, energy schemes and conservation landscapes (currently 100+).
2. What is Colerne Community Land Trust?
The Colerne Community Land Trust is a not-for-profit local organisation. It is run by local people – ordinary volunteers.
It a democratic organisation guided by a board of trustees, who are appointed by the membership at the yearly annual general meeting. The organistaion currently consists of over 90 registered members.
Anyone can become a member of Colerne CLT, provided they:
- are 18 years old or more and
- live in the Parish of Colerne
- or work in the Parish
- or have relatives in the Parish.
Colerne CLT is committed to promoting a sustainable community for the parish of Colerne, primarily through the provision of affordable and sustainably-built housing and services and in response to the community’s long-term needs.
Colerne CLT is incorporated with the Financial Conduct Authority (FCA) as a Community Benefit Society (CBS).
3. What is a Community Benefit Society?
A Community Benefit Society (CBS) is a not-for-profit organisation owned and managed by its members. The purpose and activities of a CBS must be solely for the benefit of its local community.
A CBS is registered with the Mutuals section of the Financial Conduct Authority (FCA). It is governed by strict set of rules to ensure that only the community can benefit from its services or assets.This requirement is ensured by an 'Asset Lock', that prevents assets from being sold or otherwise disposed of in the future.
Registered as a Community Benefit Society, Colerne CLT has a set of model rules developed specifically for community-led housing organisations and accepted by the FCA. Any surplus (profits) made by the CLT must be used for the benefit of the community; profits cannot be paid to CLT members or any other person or organisation. CBS registration requires the CLT to send audited annual reports to the FCA to ensure that it is being run according to its rules.
CLT members pay one pound to buy one share in the CBS and, hence, influence the activities of the CLT. This payment is specified by the governing rules of the CBS.
The full title of the Colerne CLT is Colerne Community Land & Asset Trust. The full title of Colerne CBS is the Colerne Community Benefit Society Limited. The Ltd. status gives limited financial liability of £1 to each and all of its members.
4. What is community-led development?
Community-led development is what a CLT does.The government's National Planning Policy Framework clearly defines it as:
A development taken forward by, or with, a not-for-profit organisation, that is primarily for the purpose of meeting the needs of its members or the wider local community, rather than being a primarily commercial enterprise. The organisation should be created, managed and democratically controlled by its members, and membership of the organisation should be open to all beneficiaries and prospective beneficiaries of that organisation. It may take any one of various legal forms including a co-operative society, community benefit society and company limited by guarantee. The organisation should own, manage or steward the development in a manner consistent with its purpose, potentially through a mutually supported arrangement with a Registered Provider of Social Housing. The benefits of the development to the community should be clearly defined and consideration given to how those benefits can be protected over time ...
5. What is affordable housing?
Affordable housing, whether for sale or rent must cost at least 20% less than the market price. Note that the housing charity Shelter defines 'affordable' as 35% of net income.
In the UK, 'affordable housing' refers to housing that is reasonably priced for individuals and families with lower to moderate incomes. It aims to provide opportunities for those who are struggling to afford market-rate housing. It usually includes three main categories:
Social Rent: Housing provided by Registered Providers such as local authorities or housing associations at rents significantly lower than the average market rates (e.g. 60% of market rates).
Affordable Rent: Set at up to 80% of the local market rent, this category allows social housing providers (such as CLTs) to generate revenue while keeping prices manageable for tenants.
Shared Ownership: A scheme where individuals can purchase a share of a property (typically 25% to 75%) and pay rent on the remaining share. Residents can sell their share at some time in the future to another candidate or to the CLT or the housing association, thus ensuring the property remains available to the local community.
6. What will make Colerne CLT homes affordable to live in?
CLTs are now committed to building to the Passivhaus standard. That means all homes have good quality insulation, triple-glazed windows and a heat recovery ventilation system. The aim is also to built using sustainable materials and for the houses to incorporate their own energy production system.
CLTs aim to develop social rental housing, but the cost of good quality building sometimes requires a slightly higher rent. However, the cost of heating a Passivhaus home is significantly lower, usually around 10% of a standard-built house.
7. How will Colerne CLT homes be funded?
There are two parts to funding CLT homes: development costs and building costs.
- Development costs include site surveys, legal fees, pre-planning applications and full planning applications.
- Building costs include land provision, materials, labour, plant hire and project management services.
The Government has set the development of rural social housing as a priority. It has set up Homes England as the Government funding agent, which offers some grants and loans to assist with the development costs. CLTs raise further loans for development and building costs through community shares and green bank loans.
New CLTs are advised to partner with an experienced Housing Association (a Registered Provider for social housing) to manage the financing from Homes England. Colerne CLT has already established a good relationship with an experienced local Housing Association. CLTs have been successful in attracting investment from ethical banks to support energy efficient buildings and high quality environmental management in the design.
Note that, in order to improve the financial viability of a CLT project, the NPPF allows for some market-value housing on the site to be delivered as well. However, adequate justification must be provided when submitting an application as it is imperative that affordable housing remains the primary use.
8. Who will acquire the land and own it?
The CLT will acquire the land and be its owner, holding it in a trust for perpetuity on behalf of the local community. The trust will establish a long lease with the Housing Association chosen to build the housing. Land that would not usually be designated for housing is cheaper than land for commercial 'market' development.
However, it is possible to build a limited number of market homes for the original land owner as compensation for the land transfer to ensure the viability of the CLT development. The primary land use must, however, be for social and affordable housing for the local community. The inclusion of limited market housing in the CLT planning application also ensures there is more funding available for good quality buildings.
9. How will the housing be managed?
Colerne CLT will partner with a responsible local rural Housing Association with a good management history. We shall establish management policies and selection criteria representing the concerns and expectations of the CLT membership.
Residents will be expected to be members of the CLT, thus demonstrating their commitment to this form of local housing. CLTs involve prospective residents and the local community in the planning and design process so that the development involves truly a community-led process.
10. Who will live in the homes?
Data from the latest Rural Housing Needs Survey will establish the number and sizing of the properties. However, all applicants for affordable rental and shared ownership housing must have a local community connection. Social Housing applicants must come from the Council housing list, but priority goes to locally connected applicants and thereafter to neighbouring parish applicants.
11. What can a CLT do that a market developer or housing association cannot?
A CLT is able to acquire or purchase land on behalf of the community and maintain ownership of that land in perpetuity. Plans to build on the land can be submitted to the planning authorities under the category of 'Rural Exception Site'.
- CLTs can make planning applications for development of a site Rural Exception Site.
- Applications by market developers for the same site would likely be rejected because their primary purpose is to maximise the value of the land.
- A CLT is able to determine the selection criteria for applicants to live in housing built on CLT land; it cannot choose specific individuals as residents.
- CLT homes that are part-owned or rented cannot be offered for sale to residents as can happen under 'Right to Buy' with Housing Associations. They are a community asset available in perpetuity for the benefit of the community.
12. What is a Rural Exception Site?
Rural exception sites are plots of land located on the edges of rural settlements and are usually small in size.
Developers of 'market residential' accommodation would not normally be granted planning permission for these plots. However, CLTs can gain approval because they deliver affordable housing with the aim of addressing local housing need and sustaining rural communities.
Applications for rural exception sites can be made within the Green Belt, Areas of Outstanding Natural Beauty (AONB) and National Parks.
However, they must still align with other policies in Local Plans and the NPPF. Sites must be of high quality design, an appropriate scale, must have suitable and safe access and must be located in areas of low flood risk, among other key considerations. Any kind of affordable housing can be delivered, including affordable rent, intermediate housing and social rent, provided there is adequate evidence of local need.
Once a scheme for affordable housing is permitted and developed on a rural exception site, it must always then be used for affordable housing, which will be secured through a section 106 legal requirement.
13. What planning restrictions will determine the type of housing built?
Colerne is within the Cotswold National Landscape (CNL), which has an updated management plan that determines what can be developed where and the considerations that must be included in the design and building process. Cotswold National Landscape places Colerne within a designated 'Protected Area'.
Colerne has a Neighbourhood Plan [see footnote 1] that was passed by a local referendum in March 2022. The Colerne Neighbourhood Plan is an important part of local planning requirements and remains a valid determiner of design and housing policy – in particular, Policy BE3 (see page 24).
The updated Wiltshire Core Strategy is currently being examined but, unfortunately, will not be fully accepted before 2027. This delay will result in greater pressure from market housing developers who attempt to gain planning permission on the fields surrounding the Village. However, they too will need to demonstrate that they fulfil the Cotswold National Landscape requirements [see footnote 2] and the current Government NPPF. Colerne CLT can fulfil both sets of requirements through a Rural Exception Site planning application.
The strongest support for limited development by CLT on open green spaces is the Government NPPF
14. What effect does the National Planning Policy Framework (NPPF) document have on CLTs?
The National Planning Policy Framework (NPPF) is a key policy document that outlines the government's planning policies in England. It serves as a guide to local authorities and planning bodies on how to create local development plans and manage development projects.
Community Land Trusts are seen by the NPPF as valuable mechanisms for delivering affordable housing that meets local needs [see footnote 3]. Key points regarding CLTs include:
- Local Control: CLTs allow communities to have more control over land and housing developments, ensuring that new housing reflects the unique needs of local residents.
- Affordability: The focus of many CLTs is to provide housing that remains affordable for future generations, often through long-term leases or cooperative ownership models.
- Supportive Policies: The NPPF updates encourage supportive measures for community-led initiatives, recognizing their importance in addressing local housing shortages.
When dealing with planning applications from CLTs, the local council will add a legal restriction to the planning permission, known as a 'Section 106' that ensures the homes remain at an affordable price for future eligible households.
Footnotes
[1] Available from the Colerne Parish Council website at https://www.colerne-pc.gov.uk/colerne-parish-council-neighbourhood-plan/ (see Part A).
[2] Cotswold National Landscape Managament Plan 2025–2030 para. CE15.1
https://www.cotswolds-nl.org.uk/wp/wp-content/uploads/2025/11/CNL-MANAGEMENT-PLAN_2025-30-FINAL.pdf "... Housing delivery in the Cotswold National Landscape (CNL) should be focused on meeting affordable housing requirements, particularly housing that is affordable in perpetuity such as social rental housing."
[3]NPPF 2012 Para 76
"... Local planning authorities should support the development of exception sites for community-led development (as defined in Annex 2) on sites that would not otherwise be suitable as rural exception sites. These sites should be on land which is not already allocated for housing and should:
- comprise community-led development that includes one or more types of affordable housing as defined in Annex 2 of this Framework. A proportion of market homes may be allowed on the site at the local planning authority’s discretion, for example where essential to enable the delivery of affordable units without grant funding; and
- be adjacent to existing settlements, proportionate in size to them, not compromise the protection given to areas or assets of particular importance in this Framework, and comply with any local design policies and standards. " (see also paras. 82, 83)