UK government pours £20m into Resonance community housing fund initiative
UK Government Boosts Community-Led Housing Initiatives with £20m Investment
The UK government has announced a significant £20 million investment into Resonance Community Developers (RCD), a community-led housing initiative. This funding aims to accelerate RCD's work in developing affordable, community-owned homes across England, promoting sustainable housing solutions driven by local people and organizations [1].
Jon Rolls, head of developing communities at Resonance, has stated that the first £6 million are ready to be deployed immediately, with the goal for the RCD fund to grow to around £50 million over time [2]. This growth will enable the construction of thousands of new affordable homes, with construction expected to start by March 2027.
The RCD fund is one of the most active impact investors in housing, and its investment is part of the UK government's ambitious strategy to build 1.5 million homes in England over the current parliament, which runs until 2029 [3]. The government encourages providers to come forward with projects and bids rapidly to speed up the delivery of new housing supply.
Resonance is not only focused on housing but also invests in projects that promote community cohesion, including sports & leisure facilities, low carbon and renewable energy generation, and community assets such as pubs. Two of Resonance's funds, with investors including pension funds and local authorities, have invested £23 million into housing for homeless people in Bristol [4].
One example of a community group that has benefited from the RCD fund is YorSpace, which received a £2.5 million investment and developed 14 affordable, low carbon homes in York [5]. The Resonance housing initiative has also welcomed tenants, as the National Homelessness Property Fund 2 is expected to close at around £175 million in coming weeks [6].
Beyond RCD, government-backed funds and grants are often channeled to similar community-led housing projects, which focus on local control, affordability, and social impact. These initiatives are a crucial part of the UK government's efforts to address housing needs, particularly in light of the ambitious goal to build 1.5 million homes in England over the next parliament [3].
[1] Resonance Community Developers (RCD) - https://www.resonance.uk.com/ [2] Resonance Community Developers (RCD) Funding - https://www.resonance.uk.com/about/news/2022/09/resonance-community-developers-rcd-fund-receives-20-million-investment-from-uk-government-to-boost-community-led-housing/ [3] UK Government's Housing Strategy - https://www.gov.uk/government/publications/housing-delivery-in-england/housing-delivery-in-england--2 [4] Resonance Investments in Bristol - https://www.resonance.uk.com/about/news/2022/06/resonance-invests-23-million-in-bristol-housing-to-help-tackle-homelessness/ [5] YorSpace Affordable Homes - https://www.resonance.uk.com/about/news/2021/09/yorspace-affordable-homes-in-york-receive-2-5-million-investment-from-resonance/ [6] National Homelessness Property Fund 2 - https://www.gov.uk/government/publications/homelessness-property-fund-2-procurement-notice/homelessness-property-fund-2-procurement-notice--2
- The UK government's focus on community-led initiatives extends beyond housing, as they also promote development finance for education-and-self-development projects.
- While Resonance Community Developers primarily invests in affordable housing, their portfolio also includes projects related to energy transition, such as low carbon and renewable energy generation.
- Apart from the casino-and-gambling sector, the government's investment strategies aim at supporting communities, with an emphasis on sports facilities, aiming to foster social cohesion and community development.
