Published 1 May 2008

Speaking in the debate on the second reading of the Bill in the House of Lords on 28 April 2008, Lord Graham described community land trusts as “an idea whose time has come”.  In a wide ranging speech which showed his extensive knowledge of housing issues, Lord Graham said: “Community land trusts are a means of engaging communities in their sustainable development, in particular by increasing the provision of permanently affordable rented and intermediate market housing. The purpose of a CLT is to hold land and other assets for the benefit of its defined local community. The CLT balances the needs and interests of the individual with the interests of the community as a whole by separating the value of the land from the value of the property on it. The CLT holds the land in perpetuity and leases it to the owners of the buildings on it, who may be individual home owners, mutuals, co-operatives or occupants of affordable rented housing. It is this community ownership and stewardship of the land assets that regulates the occupancy, limits the resale value of the homes built upon it and ensures that the housing built on it remains affordable to the community in perpetuity”.

“The nub of the issue” said Lord Graham was “the need to legally clarify what is meant by a community land trust”.  He explained that he understood why the government had rejected the opposition amendment to the Bill tabled in the House of Commons because it sought to prescribe the powers and activity of the new Homes and Communities Agency to be established by the Bill. He said that his amendment will overcome that objection [i] and urged the Minister, Baroness Andrews and her colleagues, to accept the amendment believing that “it will be well received”.

Lord Graham of Edmonton praised fellow Labour Peer, Baroness Jones of Whitchurch, for raising the issue and also calling for the clarity of a legal definition of a CLT.

[i]   Lord Graham’s amendment draws on the work done by the advisory group of experts supporting the Salford University review of the national CLT demonstration projects, a review that was funded by the Housing Corporation. The advisory group recommended that the nature of a CLT should be legally defined and prepared a draft definition.  Lord Graham’s amendment incorporates that legal definition of a CLT in clause 80 of the Bill as an English body capable of providing social housing.