The challenge
The UK private rented sector has a shortage of high quality, secure and affordable homes, whilst the build to rent market focuses mainly on those with above-average incomes. There is a growing need for those who are unable to access social housing or afford their own home, and for whom the private rental market is not working.
Our approach
‘Flexible rent’ is an innovative and scalable product developed by the housing association Home Group in partnership with the New Economics Foundation. It aims to deliver affordable accommodation for low-middle income families and individuals.
Individual units within a scheme can be let at either a market or discounted rate. The ratio between these two types can be flexed over time to meet a pre-defined income for each scheme.
The fund
The Fund will invest in multi-tenure housing developments, applying the flexible rent approach. BMO, Home Group and Big Society Capital are seed investors.
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Fund size
£45 million -
Big Society Capital commitment
£15 million
Key information
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Geography
UK wide -
Investment type
Property -
Fund manager
BMO -
Investment status
Current -
Investment date
2019 -
Term
Open ended
Sustainable development goals
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11: Sustainable Cities and Communities Make cities and human settlements inclusive, safe, resilient and sustainable