IMPACT THEME: Housing & Homelessness; Community & Local Democracy
WHAT THEY DO: They are a community-led organization in Devon that was set up to enable local people, in housing need, to self-build affordable eco-housing in an area made unaffordable by a large proportion of second homes. The concept was to build innovative ecological family houses with each household securing 25% of equity in return for their labour, with the opportunity over time to purchase up to a further 50% of their homes.
YEAR FOUNDED: 2012
INVESTMENT AMOUNT: £900,000
INVESTMENT SOURCE: Resonance Affordable Homes Rental Fund
INVESTMENT PURPOSE: Construction of 6 self build eco homes
DEAL STRUCTURE: 8 year secured loan from the Resonance Affordable Homes Rental Fund (3% total cost p.a.)
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. 
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.
 Currently, the target at Broadhempston is for 1% of rents going towards owning a little more equity in the homes each year.
Sibylle Dowson, Chair at Broadhempston said “Resonance has been invaluable in providing financial backing for our six self-build affordable homes. As the project has developed, we have continued to find them easy to communicate with and very responsive to our changing needs and circumstances.”
Resonance Limited is a company registered in England and Wales no. 04418625
Resonance Impact Investment Limited, a subsidiary of Resonance Limited, is authorized and regulated by the Financial Conduct Authority (FCA). Firm number 588462.
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