The average house price in Eastbourne is edging towards £300,000, which makes property owning a distant dream for many families.
The most recent government figures show a rise of nearly 15% in house prices in Eastbourne in the 12 months to April 2022.
This takes the average price from £258,000 to nearly £296,000 – an increase of nearly £40,000.
However, a modest but innovative project is hoping to help a few families find somewhere comfortable and secure to live so they can stay in the town.
The Eastbourne Community Land Trust is planning to build a small development of two and three-bedroom homes (drawings shown above), which will be available outside the traditional property market.
It is raising £1 million to build five homes on land where garage blocks have been demolished in Biddenden Close, Langney.
The houses will be available on a shared ownership basis with householders paying part rent and part mortgage each month.
The value will be set at a 20% discount to the market to make them genuinely affordable. The value of homes built by Community Land Trusts is tailored to local income levels.
Eastbourne residents can be considered for the homes by becoming a member of the trust for £1, although priority is likely be given to families in the Langney area.
There are more than 500 Community Land Trusts in England and Wales. They are not-for-profit organisations that own and develop land and buildings for the benefit of the community.
Sandy Medway, who chairs the Eastbourne trust, is uncompromising in what she sees as inequalities in the current system.
“We have seen developers shoot in, build ‘affordable’ properties for well-off people to live in, pushing out young families,” she said.
The trust plans to sell a 25% to 30% share in each house while also charging an affordable rent on the portion it owns.
Sandy says the hope is that the working householders will have mortgage payments of around £350 a month, plus rent of about £350 a month, to total around £700 monthly, which is less than market rental on a similar-sized house.
The land has been gifted by Eastbourne Borough Council. Any equity in the houses can only be sold back to the trust. There is no ‘right to buy’ as in council accommodation, so the pool of housing is not reduced.
Where the money is coming from
Sandy explains how the financing, most of which is in place, is worked out:
- £71,000 is from the Government’s Community Housing Fund, used for pre-development costs such as planning and architect fees
- £100,000 is ring-fenced Government money via Eastbourne Borough Council
- £150,000 will come from Homes England, the Government housing and regeneration agency
- £200,000 approximately is earmarked to come from a community shares offer. Under this, people invest and earn 2.5% interest for five years. Interest can be left adding to the account or withdrawn.
- £400,000 has been secured in a mortgage offer from Charity Bank
The remainder is likely to come from sources such as other grants, crowdfunding, organised events and the local lottery.
Iain Shore, a trustee, suggests there are two good reasons to invest in the community shares offer: it’s ethical and it offers a better rate of interest than current savings accounts. At the end of the term, people can request cash withdrawal.
They expect all the money required to be in place by the end of the year with building taking place in spring 2023.
The homes are modular and are made at Boutique Modern, a family-run factory in Newhaven. They are assembled on site within about two weeks. They have high insulation values and are inexpensive to run with electric charging points and solar panels.
Sandy said: “Once we can do one like this, we can start looking at bigger opportunities – for single people, other families, even workshops with accommodation. The variety of how we can engage with local people is endless.”
She believes there should be a range of housing available to rent and buy for everyone. “We need a mixed housing economy – it is giving people life chances they would not have otherwise.”
Iain became involved in the trust because of the local aspect of the project, looking after people who otherwise find it difficult to find secure, affordable housing.
“Local people are priced out of the market here. This project keeps them in the town,” he said.
Councillor Alan Shuttleworth, the borough council’s Cabinet member for Direct Assistant Services, said in a statement: “The council works with a wide range of fantastic community-based organisations, none more so than the Community Land Trust.
“I am delighted that we have been able to release this site to the CLT for the purpose of creating new homes for local people and above all, it is wonderful to know that the properties will stay community owned, in perpetuity, for future generations.”
