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Community-led housing (CLH) involves properties or developments that are built, purchased or run by local people in their own communities. They are always non-profit. This housing can be for rent, low cost homeownership or for sale, but it is designed to be always affordable for the community that needs it.
Anyone can play an active role. You don’t need to work in housing or have a degree in architecture, you don’t even need to be a builder. If you think you can make a difference or that a change is needed in your community, you can lead that change.
Community-led housing schemes are often small, but they can create a big impact on communities and those living in them, producing valuable assets and helping to support local economies.
Models of community-led housing
There are a number of well established, recognised models which some communities choose for their housing scheme. However, many communities find they develop a new model which best suits their own individual needs.
Co-operative housing
A co-operative housing or 'co-op' is a type of residential housing option that is owned and controlled jointly by a group of individuals who have equal shares, membership and/or occupancy rights to the housing.
Self-help housing involves groups of local people bringing empty properties back into use. Some communities choose to partner with a registered provider (housing association) to deliver and manage their scheme. Specialist organisations provide additional support for rural communities and for communities with particular needs, such as elderly or disabled people.
Community Land Trust
Community Land Trusts (CLTs) are a form of community-led housing, set up and run by ordinary people to develop and manage homes. CLTs act as long-term stewards of housing, ensuring that it remains genuinely affordable, based on what people actually earn in their area, not just for now but for every future occupier.
Cohousing is a small intentional community of private homes clustered around a shared space, which usually includes a large kitchen, dining area and recreational areas. Cohousing groups typically share a common interest and goal, as in housing for older residents or housing just for women. In nearly every cohousing community, the management is handled democratically by residents who live on the property.
What is involved in CLH
A community-led housing project is completed over five stages:
Want to help meet housing needs in your area but not sure where to begin? Start by bringing together a steering group of people who are motivated and care about making a difference. Together, you can shape and finalise your ideas.
Do your research and check the local community supports your plan. Good, thorough and consistent community engagement will help stop any delays further down the line. Speak to experts in the sector and then form the legal structure of your group.
Now it's time to find the right site for your project. This may depend on what the aims of your project are.
Do you need to be near certain facilities? Do you want to renovate an existing building or build new houses? It will help you, and those helping you, if you develop a site-finding brief detailing what you're looking for and why.
It's time to get your vision on paper and check the site you're looking at is going to work for your project. Then you'll need to work with architects and the local community to make sure your project can get off to a good start.
Once you’ve done this, you’ll be ready to submit your planning application.
Whether you’re building new homes, renovating a building or bringing empty properties back into use, this is when your plans start to take shape.
Make sure you understand each stage of the build process. This includes choosing the right contractors, agreeing timelines and budgets, and keeping on top of regulations and safety requirements. Stay in regular contact with your project team so you can spot any issues early and keep the build on track.
Throughout the process, keep engaging with your community so they stay informed and feel involved. Good communication can help maintain support as your project moves from planning into construction.
Now it’s time to get people living in the homes you’ve created. Whether the homes are rented or sold, they’ll need to be managed well to stay affordable and support residents.
Make sure you have a plan for managing tenancies or sales, ongoing maintenance, and any community‑led responsibilities your group has taken on.
It’s also helpful to create opportunities for new residents to connect with the wider community. This could include welcome information, local events or simply keeping communication open.
For more information about what community-led housing is and how to get your project from idea to live stage, look at the resources below.
Grants, loans, community shares and crowdfunding are all different types of external funding available to you at various stages of your community-led housing project. Some options may be more suitable for your group, depending on how your group is formed and what the aims of your community-led housing project are.
A grant is money that businesses or individuals receive for specific purposes that do not require repaying. You can apply for grants from charities, local councils or the national government. There can be strict criteria and competition for grants, so do your research and seek advice before you submit your application.
Loans are offered from various organisations, usually a corporation, financial institution or government. Loans will need to be repaid and most of the loans available to you will have an interest rate attached.
You can find more information about the application requirements and interest in the resources below:
Ecology Building Society
The Ecology Building Society is providing mortgages at up to 80% of the property value involved in your project.
Community shares are a way for the community to invest in projects that will directly benefit them or their neighbourhood. This method of funding is suitable for groups that have formed as a co-operative society, community benefit society or a charitable benefit society.
Crowdfunding is the opposite to traditional finance and is an option open to all groups. Instead of asking the bank for one large sum of money, you're asking large numbers of people for small sums of money. It's about getting the community involved, to raise funds and awareness of a community-led housing project.
Angel investors can be another option to consider for early stage funding. An angel investor is an individual who uses their own personal money to invest in early‑stage or start‑up businesses.
This method of funding will usually require a strong business proposition and a robust and confident team behind the project.
