Community Housing

(asked on 8th December 2025) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what steps are being taken to support community-backed housing schemes.


Answered by
Matthew Pennycook Portrait
Matthew Pennycook
Minister of State (Housing, Communities and Local Government)
This question was answered on 15th December 2025

The government recognises that the community-led housing sector delivers a wide range of benefits including strengthening community participation in local decision-making, engendering community cohesion, achieving high quality design and strengthening the co-operative economy.

In March, we announced a £20m 10-year social finance investment to provide capital finance for community-led housing, which is expected to directly support the construction of more than 2,500 new homes over the next decade. These housebuilding projects will be led by communities to specifically address local needs in their area.

The revised National Planning Policy Framework published on 12 December strengthened support for community-led housing, including through changes to the size limit on community-led exception sites and a broadening of the definition of organisations able to deliver community-led housing.

The new Social and Affordable Homes Programme seeks to support an increase in the delivery of community-led and rural housing. The flexibility in grant rates provided for under the new programme will help community-led schemes achieve viability and help the sector grow towards its full potential.

The government is also considering opportunities to legislate to establish a legal framework for a co-operative housing tenure, which would help formalise the rights and responsibilities of both co-operatives and their tenants, and make co-operative housing a more attractive option.

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