Broadhempston CLT

Key Facts

Name of Enterprise: Broadhempston CLT
Legal Structure: Community Land Trust
Date of Deal: April 2015
Transaction Size: £930,000
Type of Finance/Investment: Loan from the Affordable Homes Rental Fund
Expected Return: 3%+
Impact: Affordable Local Housing

Broadhempston Community Land Trust (CLT) is a community-led organization that embarked on developing six self-build homes in south Devon. These were completed in 2016, each household has received a 25% stake in the property they have built in return for their labour and pay rent on the remaining portion.

Those rents are set at 20-25% below the open market rate for the area so that they’re affordable and a small proportion of the rent will go towards occupiers owning a little more of their house each year. [1]

To become a self-builder at Broadhempston, applicants had to demonstrate being resident in the parish for the preceding two years (or for five years at some time in the past). They also had to have a total household income of less than £60,000 and commit to regular construction training, completion of their building work on time, and helping others on the site, including a commitment to a minimum of twenty hours per week on the project. The training for the self-builders should also help minimize the costs of maintaining the homes in future.

Around 50% of the self-builders now work in the local community and a community  playground is being constructed which will be available to children in the local community once finished, some of whom attend the local schools. The average length of occupancy for self-builders is around twenty five years, so everyone expects the families to stay for the long-term.

The Affordable Homes Rental Fund (AHR) has committed £930,000 of investment to help make Broadhempston CLT a reality and it’s now attracting some attention: other CLTs and self-build groups have visited the site during construction; the School of Architecture at Plymouth University; South Devon College students in carpentry and plastering; and plenty of volunteers from family members to probation service users, to overseas volunteers have helped out. The level of interest became so intense that the CLT asked the Princes Trust to help resource a mentoring and support scheme for other groups who want to learn from their experience.

[1] Currently, the target at Broadhempston is for 1% of rents going towards owning a little more equity in the homes each year