The Real Lettings Property Fund, the largest impact investment fund in the UK, now stands at more than £46m after two high profile investors decided to significantly increase their initial commitments.

The trailblazing fund, which is managed by impact investment company Resonance in partnership with leading homelessness charity St. Mungo’s Broadway, buys homes to let to homeless families in London. The Fund is delivering both proven financial returns and positive social impact.

And in the past month both Big Society Capital and the City of London Corporation have committed to boost their investments.

Big Society Capital will increase its commitment by £10m to a total of £15m while the City of London has committed to double its first investment to £1m. Big Society Capital’s second multi-million pound commitment and the increased investment from City of London demonstrates their confidence in the strength of the fund and highlights what it can provide for social investors.

In just 18 months since the Real Lettings Property Fund (RLFP) was launched, 219 homes have been acquired or are in the process of being bought. Some 82 properties have already been handed over to Real Lettings so they can match the home to a homeless person or family, and over 40 are being refurbished. So far, 144 individuals and children have benefitted and this total is growing every week.

Daniel Brewer, Managing Director at Resonance, said: “The problem and its solution are not just confined to London. It’s an exciting time for the Fund as we now have three investors who have increased commitments to this currently London focused initiative. We’re now also planning to roll out another phase of the project for next year, looking to partner with local authorities across the UK to help homeless individuals and families through this impact investment approach.”

“The key to the success of the Fund is its proven ability to source properties that are suitable for those who need them, at a price that makes sense from an investment perspective. Ensuring we have a volume of properties that can be offered at affordable rental rates and which provide a sensible risk-adjusted return to investors, means we can move more families from homelessness into new transitional accommodation that supports them on a path to secure independent living in the future.”

Nick O’Donohoe, CEO of Big Society Capital, said: “We are very pleased to be making another substantial investment in the Real Lettings Property Fund. For people who are homeless, or those at risk of homelessness, it’s incredibly important that they have the opportunity to maintain a tenancy as this will help them access private housing at a later stage. Without the type of transitional housing provided by the Real Lettings Property Fund, hundreds of people face the very real possibility of homelessness. The Fund is already making an enormous difference to the lives of homeless individuals and families who are ready for independent living, and this additional investment will help many more over the coming years.”

Alderman Peter Hewitt, Chairman of the Social Investment Board at the City of London, said: “This has been yet another successful example of the City of London’s Social Investment Fund, investing into a fund which is delivering both financial and social goals. This type of focused initiative is now becoming a serious contender for mainstream institutional investment.” Susan Fallis, Director of Real Lettings, said the latest investment was proof of the positive impact of the Fund for homeless people in need of support and that investors can benefit from a commercially risk adjusted return without compromising the quality of the support for homeless people. She said: “Reaching this level of investment shows that the Real Lettings Property Fund model of social investment works. The latest investment from Big Society Capital and City of London will allow the Fund to buy more homes and extend the benefits of a secure tenancy and support from our social lettings agency to help more people escape the cycle of homelessness.”

The Real Lettings Property Fund was launched in early 2013 and other investors have included L&Q, a number of charitable foundations (Esmee Fairbairn and Lankelly Chase) investing from their endowments, as well as a private individual investor. In February 2014, the first local authority, Croydon Council, invested £10m in the Fund to assist with the borough’s homelessness issues and promised a further £10m if it proved a success. In July, Croydon invested this second £10m and with Big Society Capital’s total investment of £15m and City of London’s total investment of £1m, the fund is now at over £46m, prior to a likely final round of investment due in mid February 2015.