The story behind the fund
National Homelessness Property fund 2 (NHPF2) has been created following the successful model of the National Homelessness Property Fund which launched December 2015 and closed for investment in December 2018 (at £30 million from investor commitments, purchasing 229 properties to house 587 people)
The fund works by acquiring properties and leasing them to the housing sector and homelessness charities to provide individuals and families at risk of homelessness with a settled home.
By partnering with housing providers, the fund will enable individuals and families to not only be provided with housing but will also signpost households to support they need to be able to sustain their tenancy and improve their circumstances. The fund also aims to partner with charity partners who will support individuals and families to find employment or education, set down roots in the community and to save for a deposit, so that they can eventually move into the private rented sector with a track record of maintaining a tenancy.
The fund will launch in partnership with Let Us initially. Let Us is an Ethical Lettings Agency run by a group of housing providers with a long-established reputation for successfully managing tens of thousands of homes across Greater Manchester. They work with landlords to help them tackle the housing crisis in the region by offering the right homes to the right tenants, making more homes in the private rented sector available to tenants who really need them, while minimising risks to landlords through their proven and robust management approach.
The fund will initially focus on purchasing affordable homes in the Greater Manchester region and will expand nationally.
The fund seeks to offer investors a commercial risk-adjusted return on their investment, including both rental yield and capital appreciation on properties. Risk is reduced as investors benefit from a widely diversified portfolio leased on fully repairing and ensuring five-year leases effectively enabling the charity or service provider to underwrite the operational maintenance, management and void risks.
The fund is aiming for its first investment close of £20m in October 2020 and will be raising further investment to grow to £100m over its lifetime and provide around 870 affordable homes across the UK.