Finance

Having identified the local housing need and considered what needs to be built to help meet this, it will be necessary to ensure that the cost of your scheme is less than the income you can generate from loans, equity sales and grants. Initially you need a feasibility study; later this will develop into a Business Plan.

To convince banks and grant-making organisations that your scheme is worth funding, a robust business plan will be paramount. This will bring together all the elements of the "wheel" and demonstrate that you have considered the demand, the procurement method, the tenures and most especially the costs and likely revenue streams generated by your homes which will ultimately service any loans you may take out. If your scheme is grant funded, the institutions to which you apply will want to be certain their money is secure and that good financial control is in place.

The first step is to devise a scheme which is financially viable. To assist with this you can use our financial planning tool which will help determine your scheme’s viability through comparison of costs and income streams. Using this outline, you can add additional detail including sources of finance, a development cash flow forecast and five year management plan to build up.

You will then be in a strong position to approach funding agencies.

Step by Step Guide

• Forming a CLT
• Who you will house
• What you will build
• Finance
  • Project financial viability
  • Project funding sources
  • CLT revenue viability
  • Business planning
• Marketing sales & rentals
• Managing building process
• Managing properties
• CLTs for other assets

Other Guides

For other CLT guides and information, visit our Resources page.