Resonance, one of the UK's leading social impact investors, has committed £1.8m to Community Ventures (Middlesbrough) Limited (CVL) from its Resonance Community Developers fund – helping to get 50 households off the social housing waiting list.
£500,000 of this investment has gone towards the purchase of 14 one-bed affordable apartments, 2 two-bedroom apartments and 6 commercial units around Shelton Court, which is in East Middlesbrough. CVL is in the process of refurbishing these properties and will rent them to local individuals and families. In addition, Resonance is investing a further £1.3m to purchase empty homes in the area.
Resonance Community Developers is a social investment fund, designed to support and invest in communities to create and own assets that meet local needs and help build community cohesion by investing in community-led affordable homes or facilities that benefit the whole community. Once refurbished, CVL will rent the properties, at affordable rents, to individuals and families who are on the social housing waiting list, providing them with stable, affordable accommodation.
In addition to high levels of unemployment, one of the major issues in the region is the lack of affordable rental housing. Jon Rolls, Head of Developing Communities at Resonance, said: “Community Ventures (Middlesbrough) is based in one of the 10% most deprived neighbourhoods in the country, where there is a chronic shortage of affordable housing, and a high level of unemployment.
“From the moment CVL approached us we could see the opportunity and the difference our investment would make to the community. Mike Millen and his team’s dedication and expertise gave us the confidence to invest in the two opportunities.”
He continued: “Together, we are committed to build a long-term relationship focused on making a meaningful difference to individuals and families, where our combined efforts can truly impact people's lives.” This news comes as many councils grapple with mounting financial pressures, with £2.29bn spent a year on providing emergency temporary accommodation to homeless households, an increase of 29% from the previous twelve months.
Mike Milen, CEO at CVL, commented: “The last 12 months have seen the local housing market change rapidly to meet the demand for contractor accommodation to feed the huge Teesworks development.
“This demand has seen those least able to move or pay more left with very few options. Resonance funding has allowed us to move rapidly to deliver on our plans for an expanded property portfolio. We are also now moving forward to purchase and bring back to life 50 void properties.
“This investment will go a huge way to building pride and ownership amongst our community. A lot of the people we work with don’t feel valued, but investment like this shows they are, and provides them with more freedom to take ownership of their lives from safe spaces.
“We are really passionate about this work and our relationship with the team at Resonance – it signifies the start of a powerful journey for our community.” He went on to add: “It aligns with our approach of helping people to achieve their potential from the foundations up, whilst also improving health and wellbeing and reducing inequalities and disadvantage in communities.”
Jodie (pic), one of the tenants that has benefitted from moving into one of the purchased and refurbished properties, said: “The 2-bedroom property that CVL has provided is great. It is well decorated and means I now have my own place where I feel safe and secure.
“This home has given me the confidence to rebuild my life, make new friends and help other people who have been in my position by supporting the work of CVL.” Resonance Community Developers operates across England and, including this investment, has committed approximately £10m so far to thirty community groups across ten English regions. Institutional Investors into the fund includes Better Society Capital and Access Foundation - the Foundation for Social Investment.
Launched in 2002 with the mission of connecting capital to social enterprise, Resonance is a social impact property fund manager that provides life changing homes and solutions for people and communities facing crisis. It is proud to be a B Corp and its 20-year plus track record of impact investing.
Resonance Community Developers (RCD) is a social investment fund designed to support communities to create and own assets that meet local needs and help to build community cohesion, by investing in community-led affordable homes and facilities that benefit the whole community.
