The Resonance housing pathways fund is seeded with over £100m in existing assets and £118m from investors
A social impact property fund manager has launched a new fund to provide affordable homes for people in temporary accommodation.
Resonance, which works with social housing providers who lease properties from the fund on long-term agreements to people facing homelessness at rents aligned with local housing allowance (LHA) levels, aims to raise £700m in assets by 2030 through its new Resonance housing pathways fund (RHPF).
Notting Hill Genesis, Salix Homes, Developing Health and Independence and Regenda/Redwing are current housing partners.
The fund already has £118m from investors including local authorities, foundations and a local government pension scheme, many re-investing from previous funds.
RHPF will invest institutional capital, particularly local government pension schemes and other long-term investors such as insurance companies pension funds, local authorities and foundations.
It aims to deliver a long-term, risk-adjusted return on UK residential property with a projected net internal rate of return of approximately 6% per annum over a 10-15 year hold period, with income backed by the government’s LHA rental streams.
Simon Chisholm, chief investment officer at Resonance, said: “The RHPF gives institutional investors a strong alignment between financial return and social purpose. It provides the structure and the scale to allow institutional investment to reach many more of the people who are in housing crisis, investing across the country but with local focus.”
RHPF will initially be seeded with over £100m of existing property portfolios from two established Resonance funds - the national homelessness property fund 1 and real lettings property fund 2 - with homes across Greater London, Bristol, Oxford and Milton Keynes. Resonance aims to expand this portfolio across the UK.
Initial investors include Oxfordshire Pension Fund, Westminster City Council, City Bridge Foundation, Better Society Capital, four additional local authorities and a strategic authority.
This is Resonance’s first open-ended residential property fund. During 2024/25, it provided homes to 3,870 people.
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