We have made our first investment in Scotland with a £2.85 million investment into a new subsidiary of Homes for Good, a social letting agency set up in 2013 that provides social and affordable housing in Glasgow and the surrounding areas.
Homes for Good was created to provide quality homes within the private rented sector, with a focus on housing supply for people on low incomes. It approached SASC for investment as it recognised the need for an alternative approach in the face of growing housing demand, with the importance of access to appropriately located, high quality and stable housing being key in enabling individuals to address wider challenges, such as mental health, relationship breakdown and recovery or other issues.
As one of our largest investments to date, SASC has provided the loan finance using an innovative property finance structure that will enable the social enterprise to grow its portfolio of homes by at least 50 additional properties to serve its beneficiaries and homelessness partner organisations.
The innovation lies in the way in which the risks associated with property ownership are distributed between the borrower and the lender. This reallocation of risk has meant that Homes for Good can focus on growing the provision of quality, affordable housing. The SASC investment covers the total cost of making these properties available for new tenants.
Ben Rick, Managing Director, SASC said, “The investment structure is designed to allow high impact charities and social enterprises like Homes for Good, whose work is currently constrained because their beneficiaries are unable to access appropriate housing, to take control of that housing need. Such an investment will be most relevant to organisations who are wary of taking on large mortgages or entering into a significant number of leases but are interested in both the social impact and financial benefit that can come from property ownership.”
Through this investment Homes for Good will be able to help a greater number of people who need a home by giving them access to accommodation and additional support services to help them stay in their tenancies longer.
Susan Aktemel, Executive Director of Homes for Good said: “We are really delighted to welcome SASC as our investor in the next stage of growth within Homes for Good. Since 2014, we have brought 190 properties back to life. We plan to acquire a further 50 homes with this latest significant investment, which will help us work towards our goal of owning 500 homes for people on low income by 2022.”
Ben Rick added, “Homes for Good represents a unique approach to addressing the challenge of providing housing in the UK today and we are proud to support their growth in providing high quality accommodation and support services.”
“This innovative structure created by SASC will enable Homes for Good to prioritise their crucial services and grow the delivery of their social impact. We hope to replicate this kind of investment to help other organisations looking to house vulnerable people in society and encourage charities and social enterprises to get in touch to see how we can help.”