The challenge
The UK private rented sector has a shortage of high quality, secure and affordable homes, whilst the build-to-rent market focuses mainly on those with above-average incomes. There is a growing need for those who are unable to access social housing or afford their own home, and for whom the private rental market is not working.
Our approach
Established in 2019, the Fund was created to meet the needs of an underserved segment of the UK housing market while generating a long-term, inflation-aligned return for its investors. The Fund’s strategy is centred on developing and operating purpose-built, build-to-rent (BTR) housing in city, town and suburban locations for low-to-middle income households, with community-building being a key focus.
The Fund
The Fund aims to deliver homes that are broadly affordable to local median income households. It then seeks to deliver further additionality by voluntarily creating discounted market rent (DMR) homes based on its ‘FlexRent’ policy, which is a unique rent policy that increases the provision of DMR homes without the use of public grant.
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Fund size
£75 million -
Better Society Capital commitment
£15 million
Key information
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Geography
UK wide -
Investment type
Property -
Fund manager
BMO -
Investment status
Current -
Investment date
2019 -
Term
Open ended
Sustainable development goals
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11: Sustainable Cities and Communities Make cities and human settlements inclusive, safe, resilient and sustainable