Housing project run by Resonance Initiative starts accepting residents, with financial support no longer available
UK Pension Funds Back New Homelessness Property Fund
A new homelessness property fund, the National Homelessness Property Fund 2 (NHPF2), has been established by Resonance, a UK-based social impact investor. The fund, which has attracted significant institutional investments, including £30 million from Gloucestershire Pension Fund, is currently active in providing affordable housing for individuals and families facing homelessness in the UK.
The NHPF2 purchases existing homes, often long-term empty properties, renovates them, and rents them out to homeless people or those in temporary housing. This model helps use existing housing stock effectively, addressing the immediate homelessness crisis by providing stable, affordable homes in established communities with essential services and infrastructure.
The fund's efforts have already made a significant impact. For instance, the Greater Manchester Pension Fund's investment in NHPF2 has resulted in the refurbishment of around 160 homes for 259 people in North-West England—including 89 children.
Chris Cullen, head of homelessness property funds at Resonance, expressed his satisfaction with the progress, stating that to truly break the cycle of homelessness, a raft of measures are needed to provide safe, affordable homes that enable people to rebuild their lives. He also emphasized the need for more attention to renovating existing properties, rather than just focusing on building new homes.
The UK government has pledged a £39bn package of measures to stimulate the building of social and affordable homes over the next decade. This pledge provides a renewed focus on social and affordable homes, a commitment that has been welcomed by Octopus Capital, along with other investors in the housing sector.
Cullen also expressed concern that the government's £39bn is virtually all designated for new build housing, with a small allowance for housing acquisitions. He highlighted that more than 260,000 long-term empty homes in the UK could provide an additional housing solution within shorter timeframes.
In addition to the current NHPF2, a new Resonance homelessness fund is planned for launch later in 2025, indicating ongoing efforts to expand and build on the NHPF2 model to tackle homelessness and housing insecurity further. This continued investment reflects growing interest from institutional and pension funds in social impact investment solutions that address homelessness while offering stable, long-term returns.
The first families moved into their refurbished homes in Gloucestershire as part of this initiative, marking a significant step towards providing safe, stable housing and support for individuals and families facing housing insecurity and homelessness. The initiative, led by Resonance and charity Developing Health and Independence (DHI), aims to make a meaningful difference in the lives of those most in need.
[1] Resonance [2] Gloucestershire Pension Fund [3] Greater Manchester Pension Fund [4] Developing Health and Independence [5] Octopus Capital
- The National Homelessness Property Fund 2 (NHPF2), established by social impact investor Resonance, has attracted development finance from institutions like Gloucestershire Pension Fund, aiming to support energy transition by providing affordable homes for homeless people.
- Institutional investors such as the Greater Manchester Pension Fund and Octopus Capital are showing growing interest in investing in social impact solutions, as seen in their support for the NHPF2, which focuses on real-estate development to address homelessness.
- To complement the UK government's efforts to stimulate social and affordable housing, Resonance plans to launch a new homelessness fund in 2025, continuing to seek finance from pension funds to achieve a real-world impact—renovating existing properties for people in need, as well as those facing homelessness, as demonstrated by the joint project with Developing Health and Independence.
