Wales Co-operative Centre is calling for a series of reforms including new legislation to help community groups deliver perpetually affordable housing in their local areas.
The proposed changes would give community organisations a statutory first right of refusal over assets in their area when they are proposed for sale or transfer, leading to more opportunities for communities to deliver housing that meets their needs.
A new report argues that the current market-led housing system is not working in Wales. With prices rising rapidly in many areas and a lack of genuinely affordable housing options for local people, the policies called for in the report would support the growing community-led housing sector in Wales.
Elsewhere in the UK, policies already exist that enable the transfer of land and assets into community ownership. For example, policies such as the Community Right to Buy enshrined in the Land Reform (Scotland) Act 2003 give community bodies first refusal on sites put up for sale in their vicinity. This has led to communities taking forward new housing schemes to address the needs of local people.
The report Community ownership of land and assets: enabling the delivery of community-led housing in Wales recommends that Welsh Government should:
- establish a commission to stimulate innovative thinking on community ownership of land and assets in Wales. The report recommends the commission should look at a broad variety of methods to increase community access to land and assets.
- introduce a Community Ownership and Empowerment Act that gives well-governed, sustainable community organisations the opportunity to have more control over land and assets in their communities.
- develop a land ownership registry/database, which provides publicly accessible data on land ownership/transactions in Wales, including publicising options agreements where future development may occur.
- establish a revolving loan fund for community-led housing projects to grow the number of affordable community-led housing projects
- develop a formal process for Community Asset Transfers (CAT) so that there is a standardised approach across all local authorities and public bodies.
Derek Walker, chief executive of the Wales Co-operative Centre, said: ‘There is growing potential for community-led housing in Wales. We are working with over 60 groups who wish to develop their own affordable housing – but there remain barriers that can only be overcome with the support of Welsh Government. Not least amongst these barriers is the difficulty for community groups to acquire land on which to build affordable homes.
‘Therefore, we’re calling on the Welsh Government to strengthen community empowerment and ownership rights to help deliver the commitments set out in the Programme for Government and the Welsh Labour and Plaid Cymru Co-operation Agreement. The recommendations within our report look to enhance democracy at a local level and transfer the balance of power away from wealthy landowners to ensure that people across Wales have a greater ability to shape their local areas.’
The report’s findings come shortly after polling conducted by the Institute for Welsh Affairs (IWA) found widespread support for legislation which gives more power to communities.
In its research, carried out for the IWA by Yougov, 68 per cent of people demonstrated support for legislation that gives community groups first refusal over key community assets. Just 8 per cent of people oppose this type of legislation.[1]