UK authorities commit £20 million to Resonance community housing investment fund
The UK government has announced a significant investment in social and affordable housing, with plans to provide £2bn in new grant funding to deliver up to 18,000 new homes [1]. This investment is part of a larger effort to build 1.5 million homes in England over the current parliament, which runs until 2029.
One of the recipients of this funding is YorSpace, a community land trust based in York, which has benefited from a £2.5m investment from the Resonance Community Developers (RCD) fund. This investment has enabled the development of 14 affordable, low carbon homes [2].
The RCD fund, which has received support from the UK government to the tune of £20m, invests in a variety of community-led initiatives, including sports & leisure facilities, low carbon and renewable energy generation, community pubs, and affordable housing [3]. The fund is actively seeking additional investors to help reach its £50m fund goal, with the aim of scaling community development efforts.
The government's investment in the RCD fund is intended to provide impetus to an evergreen social impact investment fund model that blends grants and private investment [4]. This model has already shown success with Resonance's housing initiative, which has welcomed tenants and is expected to close its current fund, the National Homelessness Property Fund 2, at around £175m in the coming weeks [5].
The first £6m of the RCD fund are ready to be deployed immediately, with the government encouraging providers to come forward with projects and bids rapidly to speed up the delivery of new housing supply. Construction of thousands of new affordable homes is expected to start by March 2027 [6].
The RCD fund supports community groups in accessing capital for housebuilding and overcoming other barriers to delivery [7]. This kind of funding enables RCD to support projects that are driven by local communities, often focusing on affordable, sustainable housing tailored to community needs.
The RCD fund has also received support from philanthropic sources, such as the Open Society Foundations, which have provided a grant of $200,000 [2]. This funding, along with the government investment, is aimed at empowering communities to lead local housing developments, improving affordability and sustainability.
Resonance is working with more than 30 community groups across England, and the impact of this collaborative funding model is already being felt. For instance, the recent £1.8 million investment into Community Ventures (Middlesbrough) Limited (CVL) is expected to greatly impact community-led local housing projects by enhancing their development capacity [1].
In summary, the UK government and philanthropic support for the Resonance Community Developers (RCD) fund is positively impacting community-led local housing projects by increasing their funding and operational capacity. This collaborative funding model, which combines government and charitable foundation support, is aimed at empowering communities to lead local housing developments, improving affordability and sustainability. The involvement of multiple funding sources serves to diversify financial backing and attract further investment for scaling these projects.
[1] [https://www.communityventures.org.uk/news/resonance-invests-1-8m-in-middlesbrough-community-led-housing-project] [2] [https://www.resonance.uk.com/news/resonance-secures-open-society-foundations-grant-funding-to-support-community-led-initiatives] [3] [https://www.resonance.uk.com/what-we-do/our-investment-funds/resonance-community-developers-rcd-fund] [4] [https://www.gov.uk/government/news/government-to-invest-2bn-in-social-and-affordable-homes] [5] [https://www.resonance.uk.com/news/resonance-housing-initiative-helps-house-the-homeless] [6] [https://www.gov.uk/government/news/government-to-invest-2bn-in-social-and-affordable-homes] [7] [https://www.resonance.uk.com/what-we-do/our-investment-funds/resonance-community-developers-rcd-fund]
- The government's investment in the Resonance Community Developers (RCD) fund, amounting to £20m, is part of an initiative to increase affordable housing development.
- The RCD fund is designed to blend grants and private investment, aiming to create an evergreen social impact investment model.
- By partnering with community land trusts like YorSpace, the RCD fund supports local, community-driven housing projects focusing on affordability and sustainability.
- Philanthropic organizations, such as the Open Society Foundations, have also contributed to the RCD fund, granting $200,000 to support community-led initiatives.
- The RCD fund seeks additional investors to reach its £50m goal, with the aim of scaling community development efforts and providing more affordable housing.
- With the deployment of £6m from the RCD fund, thousands of new affordable homes are expected to break ground by March 2027, contributing to the UK government's aim of building 1.5 million homes in England by 2029.
