The Government has launched the Council Housebuilding Support Fund, to support delivery of affordable housing utilising council-owned land. While designed primarily for principal authorities, town and parish councils can play an important enabling role, particularly where they own or manage the use of land.
What is the Council Housebuilding Support Fund?
The fund helps councils overcome barriers to delivering new affordable homes on their land, such as poor access, contamination or site constraints. There are two strands: Pathfinder Programme (open now) for councils with ready-to-go sites and the Challenge Fund (launching later in 2025) for a broader range of authorities, which will be more competitive.
Why does this matter to Town and Parish Councils?
Town and Parish Councils may own underused land (e.g. garage sites, old allotments, buildings), can support development of their local community and could partner with principal councils or housing associations to deliver affordable housing desperately needed within their constituency. It is worth auditing what land you hold, identifying any potential sites and opening conversations with your principal council.
What should be considered first?
- Power to dispose of land – Councils can dispose of land under the Local Government Act 1972 but must obtain best consideration or seek consent for below-market transfers (e.g. for affordable housing).
- Charity or trust land – Where land is held on charitable trusts (e.g. recreation grounds), it must be explored whether it is permanent endowment land or the use is restricted. Trustee duties must also be complied with.
- Physical & legal constraints – Restrictive covenants, unclear boundaries and other legal obstacles can delay or prevent development. Early legal checks are essential to make sure the site not only works practically but legally too.
- Partnership working – If engaging with other councils or a housing provider, ensure clear written agreements set out the funding, land use, roles and any long-term management.
This fund is an opportunity to unlock local land for much-needed affordable housing. Town and parish councils are well placed to support delivery of this – through land, partnerships or community leadership, to play a part in addressing the housing crisis.