Schroders Capital, the private markets business of Schroders, has acquired 38 new homes in Milton Keynes as part of the Schroders Capital UK Real Estate Impact fund to be contracted to YMCA Milton Keynes, a local charity and provider of social housing.
As a result, YMCA MK, as it is known for short, will provide residents with modern, energy efficient and regulated affordable housing, serving as a final stepping stone out of homelessness and into the private housing sector.
The homes are part of Whitehouse Park, a new mixed-use real estate development, which will be home to 4,400 families and deliver new social infrastructure – including a secondary school, three primary schools, a health facility, indoor sports centre, open space and play areas – and provide a range of employment opportunities and community facilities.
The fund has dual aims of delivering a positive social impact in addition to securing appropriate risk-adjusted returns.
The strategy predominantly focuses on addressing the UK’s housing crisis, specifically, the shortage of social and affordable accommodation, the regeneration of declining town centres and the delivery of social infrastructure.
As the only local charity dedicated to young people facing homelessness, YMCA MK operates a campus with some 300 people joining each year.
The campus comprises three stages, from single rooms to self-contained apartments, which residents move through as they secure and maintain employment, and independently manage their tenancy.
After three years within the campus scheme, residents are required to move into the private housing sector. However, YMCA MK has identified that many are returning to homelessness due to the chronic lack of affordability and quality of housing options available.
The 38 new homes will meet this need, supporting those moving out of the campus and their transition into the private housing sector at affordable rates.
Chris Santer, head of UK positive impact investment and residential at Schroders Capital, said: “The waiting list for social housing in England alone comprises 1.3 million households – highlighting the scale of the challenge and urgent need for effective solutions. We firmly believe that private capital has a pivotal role to play, and that collaboration across sectors will be key to achieving this.”
Simon Green, chief executive officer, YMCA Milton Keynes, added: “This project will revolutionise the way we are able to support our residents into independence and is a clear indication that the housing crisis is being taken seriously.”
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