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Susan Fallis and Amy Webb - St Mungo's Broadway
- 1. REAL LETTINGS PRIVATE SECTORLEASING 1
- 2. St Mungo’s Broadway •Formed in April 2014 by the merger of two long established charities, we currently work across London and the south of England but influence and campaign nationally to help people to rebuild their lives. • We believe no one should be homeless and that people can – and do – recover from the issues that create homelessness. 2
- 3. Real Lettings • Not-for-profitsocial lettings agency set up in 2005 by Broadway • Helps people who are homeless or at risk of homelessness • 17.5% of LHA housing management charge • 174 properties in 21 London Boroughs • Properties leased for 3-5 years, tenants on 1 years AST • Originally grant funded, now placement fees 3
- 4. Why it worked? •Under one roof • Relationships: internal and external • Tenancy set up • Set clear expectations • Advice and guidance – reflect review and challenge • Coach for confidence, sign post for support • Tight void/arrears management 4
- 5. What’s changed? • PropertyProcurement is a nightmare! • Increasing PRS rents in London • Reduction of LHA from 50th percentile to 30th percentile • LHA capped at 1% 5
- 6. The Real Lettings PropertyFund – why? • Welfare reform was looming • Touted our wares to many investors • Yes – 20% of profit • No – can’t justify the social outcome • Resonance agreed to partnership working • 50/50 on cost of scoping, feasibility and implementation 6
- 7. What is theReal Lettings Property Fund • The Real Lettings Property Fund is a private rented sector investment fund delivering commercial returns and significant social Impact in the area of homelessness • First Property Fund in the UK to buy accommodation to support homeless people 7
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- 9. The Real Lettings PropertyFund • £45 million capital real estate Property Fund for homeless people • Directly invest in property purchasing 240+ one and two-bed homes in Greater London over a two year period • The Fund leases properties to Real Lettings for 7 years • First close in February 2013 with £16.25 million investment • 9
- 10. • Identify investors:joint pitch and information sharing • Resonance source the properties • Resonance and Real Lettings agree the works spec • The Resonance/Real Lettings Investment Committee agree the purchase • The Fund lease the Property to Real Lettings 10 The Real Lettings/Resonance Partnership
- 11. Investors • Big SocietyCapital, the world’s first social investment bank: £5 million • City Bridge Trust: £0.5 million • L&Q: £10 million • Esmee Fairburn: £0.5 million • Lankelly Chase: £0.5 million • Croydon Council: £10 million • High net worth individual: £50,000 11
- 12. Social Impact 12 • To‘Bridge the gap’ into Private Rental Market • To create a Mode of Transition that works • To be Innovative and responsive • To deliver Tenures of advancement
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- 14. Tenant case study Rickyis currently on methadone, he had gone into rehab after he left prison and was street homeless for a while. He was offered his own one-bedroom flat in East London by Real Lettings in 2013. He was initially uneasy about moving to East London, not knowing the area and worried about isolation. However he is enjoying having his own space and security. “The flat’s lovely. I didn’t want to move to Tower Hamlets, but when I saw it I couldn’t turn it down”. Ricky wants to become a black cab driver, but needs to be off methadone for three years before he can ‘the Knowledge’. He lowered his dose from 50ml to 5ml, but struggled with the huge decrease, and started using again. When he realised he was jeopardising his tenancy and recovery, he decided to increase his dose back to 30ml.
- 15. Case study –Real Lettings landlord Mr J has been a landlord with Real Lettings since 2009. He has recently renewed his lease contract for his one-bedroom flat, in Tulse Hill, London for another three years. Mr J’s property has been home to GC for the past four years. He is a single male tenant who was previously street homeless in London and was supported by Broadway before being referred to Real Lettings for independent housing. "I have always felt reassured that Real Lettings is supportive towards homelessness, hence one of my reasons for leasing my property to your organisation. I hope we continue to maintain our positive efforts to engage and re-establish those vulnerable in our communities". 15
- 16. More information www.reallettings.com @reallettings www.facebook.com/reallettings Susan Fallis– Director of Real Lettings susan.fallis@stmungosbroadwaylondon.org Amy Webb - Real Lettings manager amy.webb@reallettings.com 16
Editor's Notes
- #3 St Mungo’s Broadway provides a bed and support to more than 2,500 people a night who are either homeless or at risk, and works to prevent homelessness, helping about 25,000 people a year. We support men and women through more than 200 projects including emergency, hostel and supportive housing projects, advice services and specialist physical health, mental health, skills and work services.
- #8 We employ two coordinators that provide practical advice and guidance to our tenants from the tenancy start through to a planned and positive move-on We work with an under one roof model to respond to property maintenance requests, rents and general tenancy queries working with internal departments to ensure a joined up service. We directly fund posts in those services 3. We estimate a fixed unit cost across the stock each year 4. We aim to work in partnership with commercial partners to secure additional resources to help maintain our stock 5. We aspire to return a surplus to St Mungo’s Broadway – to reinvest in services
- #10 April 2013 – we bought our first flat Fund currently at 26.7m – soon 37.6m?
- #13 Real Lettings Property Fund bridges the gap between hostels and unstable temporary accommodation and the private rental market.. Without a supportive mode of housing to make the transition, there are high social costs for the individuals and their families and high financial costs for the state Real Lettings provides an innovative solution to a systemic problem which helps to improve the prospects of those it houses. Real Lettings does not offer a stop-gap housing solution, or just another “warehouse” to put individuals in, but rather a tenure of advancement
- #15 He is worried about finding work; he has a limited work history, but wants to be able to pay for his own rent and save. He is still struggling with a lot of his issues, but is thankful to Real Lettings, as he has the security to be able to take his time with getting better and making changes in his life. He is looking forward to being able to work, and has been thinking about looking for courier work, as this is a job he has some experience in, and would help him eventually take the Knowledge.