Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Where property prices are set by what local people earn

Where property prices are set by what local people earn

A scheme in south London is trying a new approach to property ownership: flats that are only for sale to local people, at prices set according to what local people earn.

"My old landlord actually hugged me, she was so happy for me when I finally got my own place," says Alex Ingram.

The 41-year-old civil servant is delighted with his new one-bedroom flat in Lewisham, in the recently completed Citizens House, a four-storey block of 11 homes.

For the past 18 years Alex has either rented, lodged or lived in flat-shares in London.

This flat cost him £215,000, about 35% cheaper than similar places nearby.

That's because he didn't buy it on the open market. He bought it through a community land trust (CLT).

About 500 locals developed his building with the help of Lewisham Council, the Greater London Authority (GLA) and London CLT, a non-profit that helps neighbourhoods set up and run CLTs.

The locals decided issues like planning, design and, perhaps most importantly, sale prices.

This is calculated by looking at average local income levels, which the flats will continue to track.

Only people who can prove a strong connection to Lewisham for five years - through living or working there - can apply.

New residents have just started moving in to Citizens House in Lewisham, south London


Alex has lived in Lewisham for eight years. Also in his favour, he has been involved with a local charity called Wheels for Wellbeing, which helps disabled people get into cycling.

Other qualifying criteria include being able to get a mortgage, having a child in a local school and showing a demonstrable housing need.

The initiative aims to help people who are priced out of their local area but who aren't eligible to be on the council's housing priority list.

An independent panel decides on the applications.

Because the prices are fixed, these flats are unlikely to appeal as an investment or "nest egg".

An "asset lock" means the flats can only be sold on the same terms on which they were bought.

"I didn't have another option," says Alex. "The existing model of investing in a home doesn't work for me.

"But I think it's better that I have a home that has a stable value. I now have something to start from."

Flats in Citizens House (centre) are around 35% cheaper than similar properties in the surrounding area


The site for Citizens House was donated for free by Lewisham Council, one of the reasons the scheme is financially viable. The land had previously been occupied by a set of disused garages.

It has taken a decade of community campaigning to get the building completed.

However, London CLT believes it can speed up the process and is developing six other projects in the capital, in areas such as Greenwich, Shadwell and Lambeth.

There are 350 legally incorporated CLTs in England and Wales, according to the CLT Network, with 200 more forming. However, the vast majority of these trusts offer properties for rent rather than for sale.

The open market leaves property prices open to speculation, and can result in foreign buyers investing in flats which then lie empty.

But at least it is clear who has the right to purchase properties in this system - the person who bids the most money.

What if CLT flats are oversubscribed and someone feels they were wrongly passed over?

"A robust, fair and transparent process for deciding what sort of homes will be created and who will live in them is vital," says Beth Boorman of CLT Network, "and housing needs can differ from area to area."

Each CLT draws up its own rules and some even use a lottery system to whittle down appropriate candidates.

"No system for buying houses is perfect," points out property expert Henry Pryor. He believes CLTs, which have cross-party political support, are part of the solution to the UK's housing shortage.

There are some obstacles to them becoming a significant part of the housing mix though, he adds.

They rely on finding redundant land that is not available for development.

And, when residents move out, they will find that house prices in the open market have appreciated more than their homes, which may be an issue if they wish to buy elsewhere.

Christian Codjoe is moving into a two-bed flat in Citizens House with his brother. He says he is grateful for the scheme


Christian Codjoe, 30, is due to move into his flat in a few weeks.

He currently lives with his parents. He had saved for a deposit but feared he would have to move to Croydon or Kent to buy a home.

"Interest rates are crazy right now, but even with high mortgage payments the CLT flats are 100% worth it and get me on the housing ladder," he says.

Christian thinks his application was successful because he has lived in Lewisham his whole life, attends a local church and his current home is due to be demolished for a private development.

Fellow resident Kes Gill-Martin, 35, has just moved into a one-bedroom flat with his partner, and agrees.

"Affordable housing is very scarce and finally owning a home is transformative for us.

"This place feels like a massive change in our personal world, but such a small change in terms of what society needs."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×