Commercial not-for-profit company Capital Letters and housing charity Home Safe Housing have partnered to deliver up to 2,500 affordable rental homes in London as part of a £750m partnership.
The multi-million-pound investment aims to boost London’s social housing stock to tackle the capital’s housing crisis.
The initial 2,500 properties will be procured over the next two to three years in a leasing deal that will run for the next 40 years, with Capital Letters able to purchase some of the properties for £1 at the end of the period, to ensure that these homes will remain available to Londoners in perpetuity.
Each of the 2,500 homes will be refurbished by Home Safe Housing and brought up to Capital Letters’ agreed standard and an EPC C or above.
The majority will be let at local housing allowance (LHA) rates to households in London who are experiencing homelessness.
The market rent properties will be offered on the open market, as well as to Capital Letters’ member boroughs, which will be able to nominate working families who are experiencing homelessness for those homes.
“This partnership with Home Safe Housing is a great for London families,” said Capital Letters’ Chief Executive Sue Edmonds.
“When Capital Letters was created, it was intended that the company would be a landlord and with Home Safe Housing it can now successfully achieve its ambitions.
“By partnering with Home Safe Housing and having a mixed economy portfolio, which includes market rent as well as LHA rent homes, we can work together to support Capital Letters’ member boroughs, providing affordable housing to alleviate homelessness, built on a sustainable, financially viable independent business working with a like-minded ESG investment partner.”
Home Safe Housing’s CEO, Jared Fox, added: “We are delighted to be partnering with Capital Letters on this initial £750m investment in London’s social housing stock.
“As a not-for-profit company, Capital Letters shares our social mission of alleviating homelessness and has the pedigree to ensure a robust and well governed project.
“We know that together we can ensure the investment made will change lives for families in London, with thousands of homes being added to London’s affordable housing stock in perpetuity and that the project remains financially viable for investors.”
