REAL LETTINGSPRIVATE SECTOR LEASING

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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.

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Real Lettings

• Not-for-profit social 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 fees3

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

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What’s changed?

• Property Procurement is a nightmare!

• Increasing PRS rents in London

• Reduction of LHA from 50th percentile to 30th percentile

• LHA capped at 1%

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The Real Lettings Property Fund – 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

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What is the Real 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

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Future supply

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The Real Lettings Property Fund• £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

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• 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

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The Real Lettings/Resonance Partnership

Investors

• Big Society Capital, 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: £50,00011

Social Impact

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• 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

Achieving Social impact

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Tenant case study

Ricky is currently on methadone, he had gone into rehab afterhe left prison and was street homeless for a while. He wasoffered his own one-bedroom flat in East London by RealLettings in 2013. He was initially uneasy about moving to EastLondon, 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, butwhen I saw it I couldn’t turn it down”.

Ricky wants to become a black cab driver, but needs to be offmethadone for three years before he can ‘the Knowledge’. Helowered his dose from 50ml to 5ml, but struggled with the hugedecrease, and started using again. When he realised he wasjeopardising his tenancy and recovery, he decided to increasehis dose back to 30ml.

Case study – Real Lettings landlordMr 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".

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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.com16