Investing in properties is very interesting because people have such different goals. Some want to buy their forever home. Others are looking for assets that will offer ongoing income or a big profit in the future. However, there are other interesting schemes that are worth a look. As one of the top names for property investment in Lewisham, we want to examine one here.
Citizens House
The development in question is a four storey block of 11 homes. They are not traditional investment properties. In fact, there are controls in place to limit the increase in value in the future. This is good news for people who want to find a home.
This project is a community land trust (CLT). That means it is different to a traditional development. Instead, it is run by locals. In this case around 500 people from the local area were involved in the building. They had help from the Greater London Authority and London CLT. It was the local’s responsibility to decide on planning, the design, and more.
The most interesting thing here is the CLT decides the sale prices for the homes. With Citizens House they are based on average income levels in the local area. The aim is to ensure that the homes will remain affordable for locals.
There are other conditions for buyers too. Firstly, they must have a close link to Lewisham. This means they must live or work in the area for at least five years prior to submitting interest. Plus, having a child who qualifies to attend a local school helps. Buyers must also be able to qualify for a mortgage and be able to show a housing need.
The properties also have an asset lock. As a result they can only be sold in the future with similar terms.
An interesting journey
One thing that makes this such an interesting example of property investment in Lewisham is the journey to get here. It took over a decade to complete the building. This included a lot of work and campaigning in the local community.
The land for the development was donated by the local council. The site was originally a row of garages, but they were old and not getting much use. So, it was fantastic to see the site become homes.
More CLTs
There is a lot of attention on CLTs as a different way to create housing. London CLT is already working on six other projects in the capital. Across England and Wales there are 350 trusts. In addition, 200 more are forming.
So, there will likely be many more CLTs in the future. However, a lot of them have some obstacles to deal with first. This includes finding suitable land to build on. A number of them will be reliant on local councils to free up redundant sites.
Are you thinking of property investment in Lewisham?
While properties in CLTs won’t appeal to traditional investors, it is worth noting them. You can also keep in mind that London still has a huge selection of potential assets to explore. You’ll be spoilt for choice.
Finefair Ltd is happy to assist investors. We can provide a personal service for any portfolio. It can include management, reviews, guaranteed rent, expansion, and more. So, why not contact us if you are considering property investment in Lewisham or anywhere else in London?
