A social investment fund set up to buy homes that will be let to homeless people has received an initial £10m of investment from the housing association L&Q.
The Real Lettings Property Fund will buy one and two-bedroom flats in Greater London, which will be let by homelessness charity Broadway through its Real Lettings agency to people moving from hostels or temporary accommodation.
The fund will be managed by Resonance, a specialist social investment organisation.
L&Q is one of the largest social landlords and manages more than 66,000 homes, mostly in Greater London.
Broadway has already offered its lettings service to private landlords and operates in 20 of the 32 London boroughs. The new fund will allow it to expand its operation in purpose-bought property.
Waqar Ahmed, group director of finance at L&Q, said: "The £10m we are putting into the Real Lettings property fund is both a financial investment and a social investment for L&Q. We are committed to reinvesting every penny of our financial surplus back into homes, services and communities."
Daniel Brewer, chief executive of Resonance, said that the fund would provide a "commercial risk-adjusted return", but would also deliver a "real social impact".
Resonance said that it hoped to expand the fund to £45m by the end of next year.
