Where property prices are set by what local people earn1 May 2023 17:31
A scheme in south London is trying a new approach to property ownership: flats that are only for sale to local people, at prices set according to what local people earn.
"My old landlord actually hugged me, she was so happy for me when I finally got my own place," says Alex Ingram.
https://www.bbc.co.uk/news/business-65271214
The 41-year-old civil servant is delighted with his new one-bedroom flat in Lewisham, in the recently completed Citizens House, a four-storey block of 11 homes.
For the past 18 years Alex has either rented, lodged or lived in flat-shares in London.
This flat cost him £215,000, about 35% cheaper than similar places nearby.
That's because he didn't buy it on the open market. He bought it through a community land trust (CLT).
About 500 locals developed his building with the help of Lewisham Council, the Greater London Authority (GLA) and London CLT, a non-profit that helps neighbourhoods set up and run CLTs.
The locals decided issues like planning, design and, perhaps most importantly, sale prices.
This is calculated by looking at average local income levels, which the flats will continue to track.
Only people who can prove a strong connection to Lewisham for five years - through living or working there - can apply.