A Community Land Trust (CLT) is a not for profit organisation. It is based in a community, and it is an organization which is committed to the looking after, and maintaining a neighbourhood. It works to make land, houses and other buildings benefit the community and to be affordable for local people FOREVER.
CLTs properties can come in lots of different forms. They may be for rent. They may be “shared ownership” properties. They may be organised on a co-operative basis, or they may even be sold like a normal house. But crucially, the land they are on is never sold. Rather it is leased from the Trust – which is made up of local people – to the owner or renter. So when anybody chooses to move, they have to sell or give the property back to the trust at a fixed increase in price, so the Trust can sell it to another local family at another affordable rate. This way they offer permanent affordability for communities.
For example, if you bought a CLT home for £100,000 and in 10 years time it was worth £200,000, you would sell it back to the Trust for (roughly) £125,000… and they could then sell it at this discount to the next family. You basically trade an upfront subsidy for a diminished return, remove speculation on land value and invest housing for homes not for profit.