“Focused Social Impact and Financial Returns”
Name of Fund: Real Lettings Property Fund
Open for Investment: Fully subscribed
Term: 7 years
Target Fund Size: £57m (final close)
Assets: Direct property ownership (with five year leases)
Expected Returns: 6%+
Impact: Homelessness in London
Our pioneering impact investment fund, the Real Lettings Property Fund, attracted nearly £60m of investment at its final close early in 2015. It is already proving that it can deliver both financial returns and focused social impact in the area of London homelessness.
The Fund sources one and two bedroom properties, refurbishes them and leases them to homelessness charity St Mungo’s Broadway via its Real Lettings team. Real Lettings then lets them at affordable rates to families and individuals who are homeless or in danger of becoming homeless, and who would otherwise struggle to access the private rented sector.
The latest social impact report for year 2 shows a dramatic rise in the number of tenants housed from 36 to 233 over the financial year to 31 March 2015. The expectation is that this will rise to well over 500 individuals by March 2016 when the Fund will be fully deployed and Resonance will have handed over all the properties.
Importantly, the data also shows that 98% of tenancies are being sustained for more than 6 months and 87% of tenants say that their property has had a positive impact on their support networks and relationships. These are early indicators that tenants are successfully establishing stable tenancies – a key first step. The report also looks at early data for longer-term measures, to track progress towards tenants gaining more options in the private rented sector, progressing towards work, and developing resilience against homelessness.
Tenancy sustainment as at 31.03.2015; other data based on sample of 107 responses from tenancy reviews, with impact on networks and relationships measured at or beyond 6 months in tenancy.
The success of this Fund has led us to roll out the model to a National Homelessness Property Fund that will target other cities around the country.