Social impact investor Resonance has received a major funding boost this week, with £20m committed by the Ministry of Housing, Communities and Local Government (MHCLG) into Resonance Community Developers in a concerted bid to support community-led local housing projects.
This approach focuses on placing power into the hands of local people, who will take the lead in the design and location of new homes, with community groups being able to access land and receive planning permission where speculative developments cannot.
It is the first time the government has supported this approach to finance housebuilding at this scale and it is intended to help overcome critical barriers to delivery, such as community groups accessing the capital needed for housebuilding.
£6m of the investment is available for immediate deployment, enabling community projects to acquire land and kickstart development. This funding is part of a broader strategy to build a self-sustaining, long-term investment model that continues to support community-led housing for many years to come.
This vital £20m investment will form the cornerstone of an innovative, evergreen social impact investment fund model that blends grant and private investment and will eventually enable the fund to grow to approximately £50m.
“We welcome this government’s further commitment to community-led housing,” commented Jon Rolls, Head of Developing Communities at Resonance.
“With the first £6m ready to deploy straightaway, we are already working with communities to unlock land and move projects forward, projects that will provide much-needed affordable, quality homes for families.
“At the same time, we are actively seeking additional investors to help us scale this fund to its full £50m potential.”
The investment comes at a time when the government has committed to building 1.5million homes across England, including a £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes.
Housing and Planning Minister, Matthew Pennycook, added his support: “Community-led housing not only delivers social and affordable homes for local people, but it also gives local communities a greater say on where new homes are built and how they are designed.
“This investment will help community-based organisations overcome barriers to housing delivery and will support the growth of the community-led housing sector.
“Through our Plan for Change, we are boosting housing supply and reforming the housing system, delivering on our commitment to the biggest increase in social and affordable housebuilding in a generation.”
Resonance Community Developers is a social investment fund designed to support and invest in communities with the aim of creating and owning assets that meet local needs.
It thrives on building cohesion by investing in community-led affordable homes or facilities that benefit the whole community.
In addition to investment, the fund provides pre-development support, helping community organisations navigate feasibility, planning and funding challenges.
The fund is already working with over 30 community groups across 10 English regions, with one of the most successful examples being YorSpace, a Community Land Trust, based in York.
Here a £2.5m investment from the fund has enabled it to develop 14 affordable low carbon homes at Lowfield Green in the city.
James Neward, Co-founder of YorSpace, added: “In a place that has left many people behind, YorSpace is on a mission to create lower cost, low carbon communities that are designed by and for the people that live here.”
Laura, a soon-to-be homeowner at Lowfield Green, concluded: “We are excited to be moving into one of the 4-bedroom homes. At the moment, the kids share a bedroom, and they are super excited to be able to finally have their own rooms.”
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Resonance Limited is a company registered in England and Wales no. 04418625
Resonance Impact Investment Limited, a subsidiary of Resonance Limited, is authorized and regulated by the Financial Conduct Authority (FCA). Firm number 588462.
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