7.2. Fully mutual housing co-operatives

Fully mutual means that all tenants or leaseholders are required to be members of the CCLH scheme and that all members are tenants or leaseholders (or potential tenants or leaseholders).

See this page in: Cymraeg


Full mutuality is a particular legal structure for co-operative housing schemes (non-mutual housing co-ops means that membership is open to more than just those living in the CCLH scheme).

Tax burden

Being fully mutual means that the co-operative only pays ‘Corporation Tax‘ on interest earned and any other non-housing income. In England, fully mutual co‑operatives that provide rented housing can only issue contractual tenancies (based on contract law as opposed to housing association assured tenancies that are partially based in statute). In Wales, fully mutual co-operatives can issue contractual or assured tenancies.

Housing benefit and rent

Fully mutual co-operatives are currently exempt from ‘Local Housing Allowance‘ caps to housing benefit, and in England, fully mutual Registered Provider co-operatives are exempt from the rent reduction requirements for Registered Providers and from Voluntary Right to Buy.