The Problem
Britain faces a growing housing crisis: the Institute for Public Policy Research has predicted a shortfall of 750,000 homes by 2025. Whether the economy performs well or not, a serious gap is looming between housing supply and demand. In addition, the qualification requirements for mortgages have increased significantly and the funding of many charities and non-profit organisations operating in the social housing sector has been seriously affected by the economic downturn.
To avoid further escalation of the existing housing crisis, a new way has to be found for private investment to support the creation of decent, affordable housing at a time when government spending is being dramatically reduced.
Our Solution
Our intention is not simply to fund the building of houses, but the building of communities. We are channelling our resources to empower neighbourhood members to come together and solve their own specific local housing problems. With this new Loanstock issue, we will fund Community Self Build Affordable Housing projects, which will enable local groups to work together to either refurbish old properties or construct new homes.
How it Works
In order to ensure that a buyer on a low income can afford to purchase their home, they will be able to take out a low-rate mortgage of up to 75% of the purchase price, and an interest free, shared equity loan with ourselves for the remaining purchase balance. In addition, the buyer will be given 10% of the property’s value, as a deposit, in return for contributing 500 hours of labour in building their home.
Where You Fit In
As a registered Industrial and Provident Society, we are able to raise money by issuing Loanstock. This allows socially aware investors who place an emphasis on a social dividend rather than a financial gain to catalyse these projects. Monies raised in this way will be used to fund the purchase of properties and cost of refurbishment works. It’s a simple idea, but by enabling individuals to build their own homes – to build their own communities – the impact is much broader than putting roofs over heads. These projects provide skills for those neglected by government cuts, pride in neighbourhoods that are currently some of the country’s most deprived and a financial foundation for Britain’s hidden homeless.
Getting Involved
You can help us by investing in our Loanstock and choosing the level of interest you wish to receive; ranging from 0% to 5%. We hope that you will support this initiative and will be pleased to answer any questions you may have.