Social impact investor, Resonance, has received a significant funding boost with £20million committed by the Ministry of Housing, Communities and Local Government into Resonance Community Developers to support community-led local housing projects.
This approach focuses on placing power into the hands of local people, who will take the lead in the design and location of new homes, with community groups being able to access land and receive planning permission where speculative developments cannot.
£6million of the investment is available for immediate deployment, enabling community projects to acquire land and kickstart development. This funding is part of a broader strategy to build a self-sustaining, long-term investment model that continues to support community-led housing for many years to come.
The £20m investment will form the basis of an evergreen social impact investment fund model that combines grant and private investment and will eventually enable the fund to grow to approximately £50million.
Jon Rolls, head of developing communities at Resonance, said: “We welcome this government’s further commitment to community-led housing.”
“With the first £6million ready to deploy straight away, we are already working with communities to unlock land and move projects forward, projects that will provide much-needed affordable, quality homes for families.”
“At the same time, we are actively seeking additional investors to help us scale this fund to its full £50million potential.”
Housing and planning minister, Matthew Pennycook, added his support, commenting: “Community-led housing not only delivers social and affordable homes for local people, but it also gives local communities a greater say on where new homes are built and how they are designed.”
“This investment will help community-based organisations overcome barriers to housing delivery and will support the growth of the community-led housing sector.”
“Through our Plan for Change, we are boosting housing supply and reforming the housing system, delivering on our commitment to the biggest increase in social and affordable housebuilding in a generation.”
Resonance Community Developers is a social investment fund designed to support and invest in communities with the aim of creating and owning assets that meet local needs. In addition to investment, the fund provides pre-development support, helping community organisations to navigate feasibility, planning and funding challenges.
The fund is currently working with over 30 community groups across 10 English regions, with one of the most successful examples being YorSpace, a Community Land Trust based in York where a £2.5million investment from the fund has enabled it to develop 14 affordable low-carbon homes in the city.
