Over 450 new energy-efficient homes for mid-market rent across Scotland have been delivered thanks to a new social impact investment scheme by PfP Capital.
The New Avenue Living Fund helps deliver high quality mid-market rental homes within close commuting distance of major Scottish city centres. The Fund’s homes are managed by Touchstone, a Places for People Group company.
Since launch in 2019, a total of nine sites have been acquired with planning for 1,071 homes within Edinburgh, Leith, Glasgow, Paisley, and Midlothian. More are being sought to increase the total to 1,500 affordable homes. All homes in the portfolio are targeting an EPC rating of B or above and PfP Capital have adopted additional social impact and ESG (Environmental, Social and Governance) metrics to ensure strong social impact benefits for residents alongside strong and stable returns for investors.
William Kyle, MMR Fund Director for PfP Capital said: “We’re delighted to have delivered these high-quality homes to local areas through New Avenue Living, which goes some way to mitigating the shortage of affordable rental stock in key locations in Scotland. This shortage is exacerbated by a backdrop of steeply rising house prices and market rents, driven in part by a lack of new-build homes in recent years.
“There remains a critical deficit of affordable housing, particularly for those who are unable to save for a large deposit, do not qualify for social housing or face long waits for housing, given high demand. We are only able to achieve this intermediate goal, given the strong and valued support of our investment partners, to whom we are most grateful. A compelling feature of our proposition is that our investor clients understand that they have agency in terms of the decision around the ultimate destiny of the properties.”
Mark Vickery, Director of Business Development for PfP Capital said: “PfP Capital’s activities enable the recycling of our profits back into the Places for People Group, who is able to use this income to directly create further social value in its role as a leading social enterprise in the U.K. Our particular approach has led to discussions with interested parties in Scotland and across the UK. to enable us to increase the speed, scale and geographic spread of our social impact via our range of strategies, including the provision of high-quality affordable homes.”
Case study
Oksana, a New Avenue Living tenant, commented: “This year brought a big change to the life of my family as we were not just changing flats but moving countries. I was relocating from Ukraine due to new employment and bringing my two children with me and I needed a safe and affordable home. Being aware of the UK’s housing crisis, I was worried that my efforts to rent a flat in such a busy city as Edinburgh would simply turn into an impossible mission. I found the property advertised by Touchstone on behalf of New Avenue Living.
“What grabbed my attention was that the property offered was new-built and at a very reasonable price. It was easy to book the viewing and I heard back from the agent quickly. The property manager showing the flat was extremely helpful and kind, provided valid advice and valuable information. I really liked the transparency of the application process, as some agencies make it too complicated, and also a fast decision. Within a matter of days, we moved into our beautiful home. The team was extremely helpful at each and every step and answered my numerous questions. I became a tenant in a lovely two-bedroom apartment located in the new-built development in Leith.
“I love the area, as it is quiet and very green, just next to the Leith Links offering recreational activities for different ages. The apartment itself is light and modern and has everything needed for comfortable living. I can say I do enjoy life in Edinburgh, and this is partially thanks to Touchstone, who helped me to find a new nice and comfy home when I am away from my actual home. Thank you, Touchstone team!”
