A ground-breaking social business group which provides high quality social housing has secured £3 million of investment from Big Issue Invest (BII), allowing early stage investor Impact Ventures UK (IVUK) to successfully exit three years early.
Homes for Good (HFG) provides a solution to the lack of affordable, quality housing to people with limited housing choice in and around Glasgow, and has ambitious plans to double its portfolio and expand its model to other parts of the UK.
Since it was founded in 2013, HFG has not only pioneered the social lettings agency model within the private rented sector, but has built a strong reputation in the wider social and property investment sectors. It has attracted significant backing in excess of £12m to date from IVUK, Big Society Capital, Charity Bank and Social and Sustainable Capital.
Big Issue Invest made the most recent equity and debt investment of just over £3m from its Social Enterprise Investment Fund II (SEIF II) in Homes for Good. This is BII’s largest investment from its SEIF II fund to date. It represents a landmark moment for HFG, with IVUK securing a successful exit, having backed the social business group in 2014. Adding to its significance, the deal was finalised in what has been a tumultuous and disruptive time for everyone during the pandemic.
HFG bridges the gap in affordable housing between the social and private rented sectors, providing letting agency services to landlords and a unique and flexible tenancy support for the people who live in its 500 homes. HFG’s investment arm finds and purchases dilapidated properties, almost 250 since 2014, which they bring to life through refurbishment and interior design. HFG then lets these homes to people in housing need, or to partner organisations working with people with more intensive support and emergency housing requirements.
BII has made a strong statement of intent, continuing to invest through COVID-19, to support social enterprises at a time when the need is often greatest, showing that BII is very much still open for business. BII is excited for both future collaboration opportunities with HFG and, in particular, the groundwork this lays for future funds being developed.