Thousands of high-quality homes, including social and affordable housing, will be designed and built by local people, for local people, thanks to a £20 million government investment aimed at accelerating community-led housing across the UK.

Announced by Housing and Planning Minister Matthew Pennycook, the funding will directly support the construction of more than 2,500 new homes over the next decade. It will be available to community groups, such as community land trusts and housing co-operatives, empowering local people to take the lead in designing, planning, and delivering homes that meet the specific needs of their area.

Unlike speculative developments, community-led housing puts decision-making power into the hands of local residents, enabling them to access land and secure planning permission for much-needed housing projects.

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"This investment will help community-based organisations overcome barriers to housing delivery and support the growth of the community-led housing sector," said Matthew Pennycook.

"Through our Plan for Change, we are boosting housing supply and reforming the housing system, delivering on our commitment to the biggest increase in social and affordable housebuilding in a generation."

This is the first time the government has supported community-led housing at this scale, helping groups overcome critical financial barriers that have historically limited their ability to build homes. The £20 million investment will be placed in a social finance fund, managed by Resonance, an organisation with extensive experience in supporting community-driven housing projects.

The fund is expected to attract up to £30 million in additional match-funding from private investors, local authorities, and combined mayoral authorities, further expanding the impact of the initiative.

This funding forms part of the government's wider commitment to delivering 1.5 million new homes and helping more families and working people achieve the dream of homeownership. By boosting growth and living standards, the initiative aims to create a stronger, more sustainable housing market that prioritises local needs.

With community-led housing still underdeveloped in the UK compared to other European nations, this landmark investment is set to unlock new opportunities, ensuring local people have greater control over the homes and communities they live in.