Social impact fund manager Resonance has launched the Resonance Housing Pathways Fund to provide low-cost homes for people facing homelessness.
The fund, which aims to house around 15,000 people, has been seeded with an initial £118m from investors including local authorities, foundations and a local government pension scheme, and is targeting assets under management of £700m by 2030.
It will also be seeded with over £100m of property from two established Resonance funds; the National Homelessness Property Fund 1 and Real Lettings Property Fund 2, which hold properties across Greater London, Bristol, Oxford and Milton Keynes.
The fund aims to provide institutional capital, particularly local government pension schemes and other long-term investors, to meet the “urgent need for safe, settled, affordable housing for people facing the housing crisis”.
It will look to provide a risk-adjusted net internal rate of return of around 6% on UK residential property over a 10 to 15-year hold period, with income backed by government-linked local housing allowance rental streams.
According to Resonance, around 164,000 households are in temporary accommodation across the country.
Resonance chief investment officer Simon Chisholm said: “The Resonance Housing Pathways Fund gives institutional investors a strong alignment between financial return and social purpose.
“It provides the structure and scale to allow institutional investment to reach many more of the people who are in housing crisis, investing across the country but with local focus. Every property we acquire creates a safe, stable, affordable home for an individual or family in crisis, as a pathway out of temporary accommodation.”
Josh Brewer, responsible investment officer at Oxfordshire Pension Fund, added: “We are proud to invest in a fund that will make a real difference, both nationally and locally. This investment will increase the availability of affordable, settled housing in Oxfordshire, supporting individuals and families as they move on from homelessness towards long-term stability.”
Please visit:
Our Sponsor