A non-profit organization created by a group of London councils to find housing for homeless families has lined up investments to secure up to 4,000 additional housing units for low-income families across the capital.
Capital Letters, which was formed in 2019, said it was in advanced negotiations with private investors who could invest around £ 1.5 billion in 4,000 homes over the next four years.
More than half of the properties will be let at local housing allowance (LHA) rates to low-income families in London councils. The remaining properties will be split between market rent and submarket rent for key workers, including teachers and nurses.
Capital Letters hopes the investment model will allow it to lease properties from investment firms, thereby becoming a responsible owner of the management of the properties.
Investors working on the initiative include real estate asset manager QSix, who described how the nonprofit aggregates future demand into a single investment partner as a “game changer.”
The partnership aims to begin acquiring properties in London in 2022.
Currently, 60,000 households with 86,000 children live in temporary accommodation in the capital.
Sue Colson, Managing Director of Capital Letters, said: “We have seen the demand for rented properties in London rise sharply again, pushing up rents, which is bad news for families in temporary or risky housing. end up homeless. “
“This is why Capital Letters has developed a separate owners business to increase the supply of good quality rental properties available to low income families that London councils have a duty to accommodate. “
Ben Stirling, Co-Head of Affordable Housing at QSix, said: “Capital Letters provides a vital single point of access to local authorities’ demand for private housing to tackle the temporary housing crisis in London.
“We are proud to work in partnership with Capital Letters to provide innovative solutions to provide long-term, secure housing for low-income families and to reduce pressure on local authority budgets. “