Finance for Sustainability
Pilot investment fund to acquire land on behalf of community-led housing groups.
Why we are funding this project
This project will design an investment fund to reduce the instances of community-led housing groups missing out on acquiring suitable plots of land, because they are simply not in a position – due to capacity or capability – to secure the land themselves in a timely manner.
The fund will be able to purchase the land quickly, on behalf of community-led housing groups, and then release it to them once they are ready to proceed, having finalised design and secured planning permission. After the affordable homes have been built and sold, the community-led housing groups can repay the fund. This helps groups by removing the need for them to have the finance available upfront, in the early stages.
To increase access to land and properties not currently used as homes and to increase the availability of suitable and affordable finance.
This five-month grant goes towards the Land and Building Bridge (LABB) project, which aims to develop a £10 million pilot investment fund to acquire land on behalf of community-led housing groups and hold it for them until they are ready to purchase it themselves. The intention is that investment will be recycled and reinvested, so that multiple groups can benefit.
The feasibility stage of the LABB project has already been undertaken (funded by Power to Change). Together, Power to Change and Nationwide Foundation are funding the second stage, which is to design the fund. This will include the development of a full business plan and investment strategy, identifying how the fund should operate and be structured.
The LABB team is seeking guidance from stakeholders from the community-led housing sector, as well as experts in acquiring land and on the legal status of such a model.
LABB that is being run by Finance for Sustainability, an organisation that connects new forms of investment to social issues in the UK.Back to current funding