The Mayor is investing £15 million to help purchase 330 existing private properties that are in good condition, and then let them at genuinely 'affordable' rents to vulnerable people.
The 'Real Lettings Property Fund 2' will be run by Resonance Limited, a social impact investment company, and homelessness charity St Mungo's. The scheme aims to build on the success of two similar projects already being run by both organisations.
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On top of the £15m City Hall investment, the London boroughs of Croydon, Lambeth and Westminster have committed a total of £45m towards the scheme. Resonance hope to secure the support of other boroughs and investors to reach the fund target of £100m.
Daniel Brewer, Managing Director of Resonance, said: "We are delighted that City Hall has joined other pioneering authorities, Croydon, Lambeth & Westminster, in investing into the RLPF2.
"In partnership with Real Lettings, a social lettings agency of St Mungo's, our ambitious Homelessness Property Funds have already bought over 600 homes nationwide, housing more than a thousand people who were homeless or vulnerable to homelessness. We are thrilled that City Hall has caught the vision."
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