Resonance, one of the UK’s leading social impact investors, has announced that Gloucestershire Pension Fund (GPF) has invested £30m into its National Homelessness Property Fund 2 (NHPF2).
£20m of this investment will be invested directly into immediately buying and refurbishing around 90 properties in Gloucestershire, helping the region cut the number of households in unsuitable temporary accommodation.
Known as homelessness property funds, the model operates by attracting capital from institutional investors, such as pension funds, to acquire properties, refurbish them to a high standard, improve their energy efficiency and lease them to expert housing partners, including homelessness charities and housing associations.
Tenants are provided with stable, affordable accommodation in safe areas in the heart of local communities. They will also receive support with their health, wellbeing and in seeking employment and training opportunities. This support will be provided by Developing Health and Independence (DHI), who will lease the properties from the fund.
Chris Cullen, Head of Homelessness Property Funds at Resonance, said: “There are over 117,000 households living in temporary accommodation across England, including over 130,000 dependent children, and this number continues to rise.
“We are very grateful for Gloucestershire Pension Fund’s place-based investment into National Homelessness Property Fund 2, which illustrates the difference that local government pension funds can make to the area in which their members live.
He continued: “It will enable us to provide much needed homes in Gloucestershire for some of those households that are in temporary accommodation and that don’t have a place to call home.”
Across all of Gloucestershire Local Authorities there were, as of March 2024, 315 households in Temporary Accommodation, including nearly 200 in Gloucester City alone.
This news comes as many councils grapple with mounting financial pressures, with £2.29bn spent a year on providing emergency temporary accommodation to homeless households, an increase of 29% from the previous twelve months.
Rosie Phillips, CEO at DHI, commented: “As a social inclusion charity, the provision of safe affordable housing is of paramount importance. Housing is the single biggest cost pressure on struggling individuals and families and lack of affordable housing causes stress, inequality and poor health.
“Without a secure place to live, progress in other aspects of life will be poor. A safe place to call home provides people with a platform on which to build their lives.”
She went on to add: “It is great to be able to work in partnership with Resonance on this initiative, which aligns with our approach of helping people to achieve their potential from the foundations up, while improving health and wellbeing and reducing inequalities and disadvantage in communities.”
NHPF2 operates across England and, including this investment, has to date raised c£129m, and purchased over 350 homes, housing almost 500 tenants who were facing a housing crisis.
This latest £30m investment will help provide homes for potentially 750 individuals and families over the lifetime of the fund.
Institutional investors into the fund include other pension funds, such as Greater Manchester Pension Fund, and several local authorities.
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