NEWS
Ethical landlord raises further equity to tackle growing housing crisis
The Ethical Housing Company ( EHC )
is scaling up its efforts to provide decent and affordable homes to rent in Teesside after securing
£ 7.5m of additional funding . The new investment comes from the Teesside Pension Fund , which has committed £ 5m , and social investor Big Society Capital , which has committed £ 2.5m as part of a national effort to combat homelessness in the wake of the Covid-19 pandemic .
EHC was launched in 2018 with an initial £ 5m of funding from Bridges Evergreen Holdings , a specialist long-term investment partner for mission-driven organisations .
To date , EHC has acquired a portfolio of more than 60 properties , with a further 20 completing soon . It offers well-maintained , decent and affordable homes to let to households in need , in partnership with the Ethical Lettings Agency CIC , which supports tenants to sustain their tenancies for the long term .
EHC ’ s new funding will be used solely to purchase properties to let to people in housing need . The company has a growth plan to acquire in the region of 100 properties per year for the next decade .
EHC is operating within an everworsening socioeconomic context on Teesside . Pre-Covid , Teesside already had around 60 per cent of tenants in the private rental sector in receipt of benefits , double the national rate , and the local unemployment rate was also twice as high as the country as a whole .
By August 2020 , 22 per cent of all households on Teesside were in receipt of Universal Credit , a 97 per cent increase since March , and unemployment is set to rise significantly when the furlough scheme ends , leading to increasing homelessness . EHC offers a positive alternative . With this additional investment , EHC can expand its portfolio so it can help many more people find a decent and affordable home to live in , while also working with local stakeholders on longer-term strategic solutions to homelessness and housing need on Teesside .
Carla Keegans , founding director of EHC , says : “ We are excited to be working with the Teesside Pension Fund and Big Society Capital and thank them for their trust in us .”
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