Homelessness Property Funds Social Impact Report 2021/22
THIS FUND IS FOR INSTITUTIONAL AND CERTIFIED SOPHISTICATED INVESTORS
At the initial outbreak of the pandemic, the rough sleeping community were some of the most vulnerable people at risk. In a matter of days, councils and homelessness charities across the UK successfully managed to get thousands of people off the streets and into safe, temporary accommodation.
With 11,018 people sleeping rough in London in 2020/21, partners across the social investment sector came together to bring new capital into social investment property funds that would provide long-term housing solutions, with the Mayor of London prioritising the creation of long-term social rented homes, available at affordable rent levels.
In March 2021 the Resonance Everyone In fund was created in just a few short months, launching with £12.5m in seed investment from the Mayor of London (Greater London Authority, GLA) and Big Society Capital. The fund had an ambition to raise £15m in investment but this target was quickly exceeded following additional investment from four new investors: Trust for London, Monday Charitable Trust, a foundation and a high net worth, taking the final fund size to £16.5m.
The fund partnered with leading social justice charity and housing provider Nacro, who secured four-year funding from the GLA, to provide tenants with a wraparound support service, enabling them to maintain their home, set down community roots, address any addiction, mental or physical health support needs, and re-engage with education or employment. This will enable more people to leave rough sleeping behind and live in supported accommodation.
Properties were chosen with Nacro to ensure they would meet the needs of tenants. Once purchased and refurbished, including enhancement of their environmental credentials, they were handed over to Nacro. The housing team at Nacro were responsible for furnishing each property, ensuring they were homely, practical and welcoming for tenants when they moved in.
The fund’s aim was to purchase 50 one-bedroom properties in London to provide around 200 rough sleepers with a refurbished, decent and settled home over its lifetime. However, it exceeded this, acquiring 56 homes and so far, housing 50 tenants. Once refurbishment has been completed, the final 6 properties will be handed over to Nacro for furnishing and then housing tenants.
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 ten-year leases effectively enabling our housing partners or service providers to underwrite the operational maintenance, management and void risks. Please remember if you invest in this fund, your capital may be at risk.
This fund is now closed to investment.
Mayor of London, Sadiq Khan: “A secure, long-term home should be a basic right for every Londoner, but a decade of austerity and the economic crisis created by the pandemic means far too many people have found themselves on the street or in temporary accommodation.
“My teams and their charity partners are working around the clock to help the most vulnerable people to work towards a life off the street – but this is only possible if there is high quality, affordable accommodation available at the end of their journey. The work being carried out by Resonance and Nacro will create the homes our fellow Londoners deserve and ensure they have access to the support they need to rebuild their lives.”
Simon Hughes, Head of Housing and Support at Nacro: “We know Rough Sleeping has a devastating impact on communities, people’s lives, health and future so we are delighted that the Resonance Everyone In fund is on target to acquire homes where Nacro can deliver the support to enable people to thrive and move towards lasting independence away from the street. Holding on to a home in these difficult times is a vital step in helping people to move on with their lives.”