Helping charities scale through property ownership

Access to safe and stable accommodation is essential to help improve the lives of people facing difficult situations such as addiction or homelessness, however many charities face barriers when trying to secure property. The private rented sector can’t offer a solution in many cases, with private landlords preferring not to let to those receiving benefits. Some of these charities have started purchasing property, however there are many challenges, such as the gathering a deposit that could be 30% or more.

By owning their own properties charities can become more financially sustainable and resilient than through leasing properties. Social and Sustainable Capital (SASC) presented a solution though their Housing Fund, co-designed with charities and social enterprises to ensure it met their needs. In order to remove some of the barriers to ownership SASC’s Fund eliminates the need for a deposit, offering charities a 105% mortgage. The extra 5% can be put towards the management of the properties purchased. The Fund will also help charities to move on to accessing mainstream finance in the long term, offering the change to a traditional mortgage after 10 years.