More families at risk of homelessness will be supported into safe, affordable homes thanks to £20 million of new investment into social and affordable housing funds, social impact investor Big Society Capital has announced today.
This will see £10 million of funding from the Department for Levelling Up, Housing and Communities (DLUHC) combined with an additional £10 million invested by Big Society Capital, to deliver 215 housing units for individuals and families who are homeless or stuck in temporary accommodation.
The investment will support National Homelessness Property Fund 2, which purchases and refurbishes existing housing from the property market and makes it available to people facing the housing crisis. Homes are rented to tenants at Local Housing Authority rent levels to ensure they remain affordable.
Managed by social impact fund manager Resonance, the fund provides tailored support from charities and housing associations to help residents maintain their tenancies, including addiction services, education and employment support and counselling.
The investment will fund homes for families across England with a particular focus in London, Greater Manchester and Merseyside.
The Government’s £10 million will be invested into the fund, with all money generated to be recycled and used for further housing projects.
The announcement comes at a time when the affordable housing crisis is expected to be exacerbated as a result of rising inflation and living costs – with the number of families who are homeless or at imminent risk of homelessness going up by more than 23% in 12 months.
Social and affordable housing funds use private capital to fund safe, affordable homes – often for people experiencing challenging life circumstances – whilst also aiming to provide investors with competitive risk-adjusted financial returns.
This investment marks the second time the department has funded new homes in this way; following its grant of £15 million into a group of funds tackling homelessness in March 2021.
This was match funded by £15 million from Big Society Capital, and has already delivered 296 housing units; far exceeding initial targets of delivering 240 housing units by 2024.
