Key info
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Focus area
Social property -
Asset class
Social lending -
Region
Yorkshire and the Humber -
Duration
15 years -
Investment amount
£1 million -
Cost of capital
6.5%
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Challenge
The collapse of Hull’s fishing industry left many parts of the city with low levels of owner-occupation and a surplus of poorly maintained private rented housing. Like many cities, Hull is facing challenges regarding the availability of good quality housing, with many people on lower incomes being priced out of the housing market.
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Approach
Giroscope renovates empty and derelict properties, bringing them back into use to provide affordable housing to those in need. Renovating empty properties has also allowed Giroscope to run training and employment programmes for those at risk of social exclusion. Many beneficiaries often go on to live in a Giroscope home, sometimes one they have renovated as part of the volunteer program.
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Revenue model
The loan enabled Giroscope to acquire properties that could not be funded through traditional mortgages, with the charity often benefiting from being cash buyers. Giroscope is able to make loan repayments from the rental income generated from the portfolio of properties.
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Impact
Giroscope has provided homes for over 250 people and has expanded its training and community services, working with over 100 volunteers. Giroscope has also been able to renovate its office headquarters, which now serves as a walk-in community hub for local social enterprises and individuals to access.
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