Greater Manchester Pension Fund (GMPF) has increased its investment into National Homelessness Property Fund 2 (NHPF2), investing a second £10 million into the fund. The pension fund initially invested £10 million in seed investment into NHPF2 at launch in December 2020. The £20 million it has now invested is enabling the fund to purchase even more homes in the Greater Manchester region for people facing housing crisis – including those experiencing rough sleeping in the region. The total raised so far by the fund, is currently £65 million.
The fund initially focused on providing a sustainable housing solution for people facing housing crisis in the Greater Manchester region, where currently:
NHPF2 works by buying properties, refurbishing them to a decent standard - ensuring they are both safe and energy efficient – before leasing them to the housing sector and homelessness charities to provide individuals and families at risk of homelessness with a settled home.
In Greater Manchester, the fund has partnered with Let Us, a group of five registered and ethical housing providers. By partnering with these expert housing partners, the fund not only provides tenants with an affordable home, but also signposts them to any support they might need in order to sustain their tenancy and make positive plans in other areas of their lives, including finding employment and tackling health and addiction issues. The tenancies granted are longer than traditionally offered in the private rented sector, enabling tenants to put down roots in the community and plan for their future goals.
Expansion for NHPF2 and place-based impact investment: Having initially prioritised buying properties in the Greater Manchester region, the fund is now expanding into other regions across the UK, including Bristol, Oxford and Liverpool City Region, delivering nationally diversified return alongside locally focussed investment. This place-based impact investing focus is proving popular with institutional investors looking to make a positive impact in the geographical area within which they operate, benefiting local communities and people in housing need.
With ambitions to expand even further across the UK, the fund aims to raise £300 million from institutional impact investors such as pension funds and local authorities. This will enable it to acquire around 1,500 homes and to house around 7,500 people over its 15 year lifetime.
Since our first property fund launched in 2013, we have helped to provide homes for almost 3,000 individuals and families in over 1,000 properties, in major cities across the UK.
Case study: One of the first tenants housed by the fund is Julie. She moved into her new home in summer 2021 with her twin teenage daughters and said: “Because we were homeless for three years, our lives were on hold. Existing rather than having a life. Now though I am most proud of moving the children out of a hostel and seeing them change into young adults, as life is about achieving the most for your children. The children love it, they like where we are. There is a park next to the house, the school is close, and they are making better choices. My plans are to stay for as long as possible. It has put us back within a community. I don’t want to move again and am happy here. It has changed me as a person. This is now a home.”
John Williams, Managing Director of Property Funds at Resonance, said: “It is fantastic news that Greater Manchester Pension Fund has chosen to invest for a second time into National Homelessness Property Fund 2 and is recognition of the desire of pension funds to invest for good and to have a positive impact on the communities within which they operate. This additional investment means that the fund will be able to make a real difference to the lives of people currently experiencing homelessness in the region, including many people sleeping rough. And it will enable it to realise its overall ambitions to provide around 1,500 decent and stable homes - and the potential for people to rebuild their lives - for thousands of individuals and families over its lifetime. And whilst this investment will support GMPF’s ambitions for place-based economic growth, this fund is also providing opportunities for other institutional investors to support their place-based ambitions in providing solutions to local housing needs.“
Cllr Ged Cooney, Chair, Greater Manchester Pension Fund, said: “Our Impact Portfolio seeks to invest locally and create a positive impact, alongside generating a commercial return. I am proud that the Greater Manchester Pension Fund is continuing its support for National Homelessness Property Fund 2 - and its effort to tackle the local housing issues in Greater Manchester - by investing an additional £10 million into the fund. Aiming to deliver a competitive risk adjusted return to ensure we meet future pension obligations, as well as delivering measurable and positive social change in the Greater Manchester area, NHPF2 is providing a sustainable and place-based solution for economic growth in the region and beyond. I look forward to seeing the fund scale up its efforts to house more local people at risk of and experiencing homelessness.”
Sue Sutton, CEO of Salix Homes and Chair of the Let Us Project Board, said: “We’re delighted that Resonance have secured a second round of funding from the Greater Manchester Pension Fund into the National Homelessness Property Fund 2. The homes Resonance acquire with this fund, and lease to Let Us, make a huge difference to people’s lives.
“In times of national crisis, inflation and a rising cost of living can impact the lives of people in already precarious housing situations the most. The additional funding from GMPF will enable Let Us and Resonance to work together to offer even more households high-quality, long-term, affordable rented housing, at a time when it is needed the most.”
Read more about National Homelessness Property Fund 2 here.
England’s Homelessness Statistics as at 31 March 2022
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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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