What is it?
Social impact investment is aimed at bringing about improved social or environmental outcomes as well as generating a financial return for investors. Its used to fund social enterprise and innovations focused on social impact. There is also growing experimentation with innovations in financial mechanisms as a means of improving social outcomes. The UK has pioneered innovations in finance for impact, for example in the development of social impact bonds.
Who’s doing it?
Resonance: The Real Lettings Property Fund
Resonance and St Mungo’s have teamed up to create the Real Lettings Property Fund (a social impact investment fund) in London. The fund is designed to help people at risk of homelessness to find a home and become more independent, on the basis that stable housing and light touch support will lead to positive developments in other parts of their lives.
The fund was set up in response to the failure of the London housing market to provide homes accessible to people who are trying to start their journey out of homelessness. The fund buys one and two bedroom flats across Greater London and leases them to St Mungo’s. St Mungo’s then make the property available through their social letting agency ‘Real Lettings’ to homeless individuals and families ready to start their journey out of homelessness and live independently.
From the opening of the fund to March 2016 they expect to have supported over 500 people into accommodation and to rebuild their lives, all while providing expected returns of 6%+ to their investors.
- More information here.
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