The Community Land Trust (CLT) model is regarded by some as a possible solution to the current issues that European housing markets are facing, such as unaffordability and segregation. As this model is able to provide perpetual affordable housing through collaboration between local residents, local authorities and civil experts, the statement could be made that this model develops and maintains housing that is centred around place community to a neighbourhood. This has brought up the idea that CLT might be able to booster social sustainability within this local context. However, the overall concept of social sustainability and the overall impact of the CLT model on social sustainability has both ben limitedly researched. Therefore, the aim of this study is to research the impact of the presence of a CLT on the social sustainability of a neighbourhood by answering the following main research question: How does a CLT impact the social sustainability of a neighbourhood? To answer this question, an operationalisation method based on the innovative Capabilities Approach has been constructed. This operationalisation tool was then deployed to gather information on the impact from a theoretical perspective through a literature review, from an organisational perspective through an expert panel with organisations from the European CLT network, and lastly from the residents’ perspective through a single-case study of a representative case for the classic CLT model. Based on the theoretical and organisational perspectives, the conclusions were drawn that the CLT model has the potential to positively impact most if not all social sustainability capabilities, meaning that the CLT model is able to increase these capabilities for the residents of the CLT. This positive impact, although not as extensive, has also been observed in practice. From the residents’ perspective it was gathered that the CLT model could positively influence the capabilities that have to do with the indicators of accessibility, housing, knowledge & skills, social network & interaction, safety & security, and sense of place, together with participation & democracy. The model is able to do so through implementing frameworks and resources, that could influence social and environmental conversion factors for the better. To be able to provide these frameworks and resources, however, the CLT organisation also needs to have the capability to do so through resources. However, there are limitations to the generalisability of the research findings. This study forms the beginning of a theory on the impact of the CLT model on social sustainability on a neighbourhood level, and further in-depth research is therefore the primary recommendation for future research.