The Ministry for Housing, Communities and Local Government has allocated £15m for the initiative, from the previously announced £750m figure dedicated to tackling homelessness this year. Leading social impact investor, Big Society Capital, will match the £15m figure, in a move which will mark the first time the Department has used social impact investment to fund new homes.
The government will roll out the pilot scheme over the next three years, and will predominantly focus on London, Greater Manchester and Teesside. The funding will enable purchases of existing properties to then make them available at Local Housing Authority rent levels.
The department plans to re-invest any financial returns from the initiative, through rents or capital appreciation, into providing further homes for rough sleepers.
Eddie Hughes MP, Minister for Rough Sleeping and Housing said: “I am delighted to announce this partnership with Big Society Capital that will see a total of £30 million invested in new homes for rough sleepers.”
“This Social Investment pilot will help to provide additional settled accommodation and support to help rough sleepers off the streets permanently.”