Resonance has released its latest Social Impact Report covering the Real Lettings Property Fund’s second year of operations, 2014/15. The first of its kind impact investment fund has attracted nearly £60m in investment and its aim is to deliver both financial returns and focused social impact in the area of London homelessness.

Resonance has released its latest Social Impact Report covering the Real Lettings Property Fund’s second year of operations, 2014/15. The first of its kind impact investment fund has attracted nearly £60m in investment and its aim is to 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 St Mungo’s via its Real Lettings team. Real Lettings then lets them at affordable rates to families and vulnerable individuals who are homeless or in danger of becoming homeless, and who would otherwise struggle to access the private rented sector.
The report shows a dramatic rise in the number of tenants housed from 36 to 233 over the financial year to 31 March 2015, and the expectation that this will rise to well over 500 individuals by March 2016 when the fund is fully deployed and will have handed 75 mg over all properties.

Importantly, the data also shows that 98% of tenancies are being sustained for more than 6 months and 87% of tenants say that the property has had a positive impact on their support networks and relationships. These are promising early indicators that tenants are successfully establishing tenancies – a key first step. The report also looks at early data for longer term measures which are in place to track progress towards tenants gaining more options in the private rented sector, progressing towards work, and developing resilience against homelessness.

Simon Chisholm, Investment Director at Resonance commented: “We are really pleased that this fund is performing well financially, having successfully sourced a portfolio of around 270 good properties all around London at the target yield. But this is equally about the impact which well run social enterprises like Real Lettings can have on people’s lives – so its great to see how fast this investment has allowed Real Lettings to scale up its activities, and the impact this is beginning to have for individual tenants.”

The report provides an important backdrop as Resonance prepares to launch a follow-on fund aiming to bring this impact investment model to a number of other cities around the country.