Housing cooperatives are fast-growing in popularity as part of an alternative living trend, and one of the newest in mid-Wales is opening up an ethical investment opportunity for those who want to keep money local.

With the rise in rent prices, stagnation in pay and the increasing inaccessibility of the housing market, many are turning to alternative options of living.

Whilst there’s been a visible growth of van conversions and boat-dwellers, one of the less visible trends is housing co-ops.

Housing co-ops are shared properties that are managed by the people who live in them. Instead of having a traditional landlord, a group of people pool their money or take out a loan collectively to buy a property together.

The Tir Cyffredin Housing Co-operative is based in Bryn Tyrnol on the outskirts of Machynlleth. They're hosting an open day on 26 July to find out more about alternative housing models and their loanstock offer.
The Tir Cyffredin Housing Co-operative is based in Bryn Tyrnol on the outskirts of Machynlleth. They're hosting an open day on 26 July to find out more about alternative housing models and their loanstock offer. (Tir Cyffredin)

This model can offer a sense of ownership and control, something that is lacking in the current rental market.

The Dyfi Valley is home to multiple housing cooperatives, with Tir Cyffredin (Common Land) in Machynlleth being among the newest.

After starting the process of purchasing the house from the previous owner five years ago, the residents are now seeking local support.

Instead of getting a loan from a bank, the cooperative is offering loan stock as an ethical investment, offering interest on investments in return.

A spokesperson for Tir Cyffredin said: “By investing in Tir Cyffredin you are supporting continuation of seven affordable and secure community housing rooms, helping us strengthen community bonds, and ensuring housing remains a right, not a commodity.

“This model of investment creates opportunity for local people to make reasonably small investments over a fixed term and pre-agreed interest rates, meaning that profits stay within the local economy - challenging the monopoly of commercial banks on lending and investment.

“Machynlleth is a thriving market town with a vibrant and diverse community.

“The Local Development Plan supports the fact that there’s a real need for affordable, secure housing in Machynlleth, which Tir Cyffredin is able to play a part in meeting.”

Instead of gaining a loan from a bank, the co-op is seeking investment from the community.
Instead of gaining a loan from a bank, the co-op is seeking investment from the community. (Tir Cyffredin)

This September the residents repay the first £71,000 to their investors, and are looking for a further £60,000 to fund their next phase of development to invest in the upkeep of the house and gardens and make it energy efficient, aiming to secure the property both physically and financially now and in the future.

The residents are hosting an open house and garden at Bryn Tyrnol from 2-7pm on Sunday 26 July to showcase the work that has gone into the “successful model of affordable housing”, offering food, foraging, live music, poetry, a cider bar, and information about alternative housing models.

Find out more on their website - https://www.tircyffredin.co.uk/ , their Loanstock Investor Pack or email [email protected]