The solution
BBC News reported in 2023 on Citizens House, a four-storey block of 11 flats in Lewisham, south London, developed by about 500 locals with Lewisham Council, the Greater London Authority and the non-profit London CLT. A one-bedroom flat cost civil servant Alex Ingram £215,000, about 35% cheaper than similar places nearby, because it was sold through a community land trust, not on the open market.
The price is calculated from average local income levels, which the flats continue to track. Applicants must show a strong five-year connection to Lewisham through living or working there, be able to get a mortgage and show housing need; a child in a local school and community involvement count. An independent panel decides. An 'asset lock' means the flats can only be sold on the same terms on which they were bought, so they are unlikely to work as investments.
The scheme only works because Lewisham Council gave the site, formerly disused garages, for free. The BBC says it took a decade of community campaigning to finish the building.
Why it worked
Income-linked pricing takes the flats out of the speculative bidding that sets open-market prices.
A free council site removes the largest cost, making the lower price financially viable.
The local-connection test ensures the discount goes to people being priced out, not outside investors.
The asset lock keeps the next buyer's price at the same affordable formula.
What can be applied
Decoupling a home's price from the speculative market and re-linking it to local wages makes the discount permanent, not a one-time giveaway.
Aftermath
London CLT said it could speed up the process and was developing six other projects in Greenwich, Shadwell, Lambeth and other areas. The CLT Network counted 350 CLTs in England and Wales with 200 more forming, though most offer homes for rent rather than sale. The BBC notes limits: the model depends on finding redundant land, and owners who leave may find open-market prices have risen faster than their own flats.
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