Social Finance UK

Investing in Localism

Published:

4 June 2018

Power to Change and Social Finance are calling on local authorities to rethink the way they make investments in pursuit of income for local services. In a paper published today, the independent trust supporting community businesses and not-for-profit organisation highlight how councils can invest in the community in a way that delivers economic, social and environmental benefits for council taxpayers, at the same time as delivering a financial return for councils. They highlight enlightened local authorities already pursuing this strategy and call on more to use their balance sheets and access to flexible, long-term finance from the Public Works Loan Board to better benefit the communities they serve.

Supporting homelessness prevention and alleviation through investment in the private rental sector

Published:

10 October 2014

Author:

Social Finance

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DCLG commissioned Social Finance to explore ways of using institutional investment to increase the supply of long term, well managed, Private Rented Sector Accommodation for homeless households at Local Housing Allowance level rents. This includes both the purchase of existing property and new build. A seminar was held on November 4 2013 with representatives from around 25 local authorities and provided an important opportunity to canvas a wider range of opinion and perspectives.

The project has also benefited from the advice and guidance provided by an expert advisory group including representations from a range of organisations, which met regularly throughout this project to review progress. Meetings were conducted with a number of additional private sector organisations during this project including potential investors, tenant and asset managers, and registered providers, who have also provided constructive challenge and feedback. In addition to this report, a technical guide for local authorities as well as a financial model to assess viability have been developed which are available for use. The structures and financial model have been developed with consideration of the acquisition of a portfolio of street property. This reflects the desire by local authorities to consider activities which can be completed immediately to help address homelessness numbers, and the time lags of introducing new build developments. However it is not viewed that the inclusion of new build developments would have a material impact on the analysis presented, and both the financial model and structures can be easily adapted.

The technical guide can be downloaded here and for a copy of the financial model please email info@socialfinance.org.uk.

Rebuilding the relationship between affordable housing and philanthropy

Published:

1 September 2013

Author:

The Smith Institute

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Nick Salisbury, Director at Social Finance contributed a chapter to this report; “Is Social Investment Relevant”.

The challenges of build to rent for UK housing providers

Published:

25 June 2013

Author:

Resolution Foundation and Social Finance

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Britain’s housing crisis is well documented. Supply has failed to keep up with demand for many years, keeping prices historically high despite a prolonged downturn. This has become particularly pronounced in the private rented sector which in many parts of the country is now more expensive than owning a home with a mortgage given that interest rates remain low. However, difficulties accessing mortgage finance and raising a deposit coupled with a decline in the stock of social housing have left many low and middle income households with few options except the private rented sector.

Kick starting the development of purpose built rental accommodation in the UK to increase the supply of private rented homes for those who are shut out of home ownership must now be a priority. As well as growing supply, build to rent could bring to market a new rental offer for tenants: purpose built accommodation, greater security of tenure, more transparent rental increases and more consistent management quality, with a new breed of lettings agents and asset managers.

This briefing note looks at the challenges that build to rent poses for housing providers. It is based on a six month project conducted by the Resolution Foundation and Social Finance to develop a financing model for institutional investment in a build to rent portfolio of 778 rental units nationwide aimed at middle income households.

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