Community groups that want to build new homes can apply for grants of about £50,000 from a £4.2m funding pot opened by Power to Change.
The independent trust has launched Homes in Community Hands, a fund that will award grants to community-led housing groups, including community land trusts, cohousing groups, and housing cooperatives.
Grants are available to new-build and refurbishment projects, and will cover the cost of work to assess the feasibility of a site for development, work towards a planning application and costs to get a project ready to start.
Power to Change has also announced it will work with the Community Land Trust Fund, which provides loans from CAF Venturesome of between £25,000 and £70,000 to support community land trusts with pre-planning and development.
Power to Change will provide grants to go alongside community groups’ loans, which will be worth up to 50 per cent of the value of the loan and will help them to buy in additional capacity and professional support.
Rose Seagrief, programme manager in charge of housing at Power to Change, said: "We are delighted to be launching these funds to support the increasing number of community groups that want to create better places to live now and in the future by delivering permanently affordable homes.
"Nationally, 5,500 community-led homes are expected to be built over the next five years, but groups need help with the costs in the early stages of these projects to get these essential schemes off the ground."
More information on the Homes in Community Hands grant programme is available on the Community Led Homes website.
For more information on the CLT Fund, visit here.