Last month the Royal Borough of Kensington and Chelsea (RBKC) revealed that they had made a key decision on a plan to help tackle homelessness. It will be a pioneering project, the first time a council in the UK will do it. If it is successful, it could inspire similar initiatives. We want to have a closer look at it here. Then, if you need help with property management in Kensington and Chelsea, you can rely on us.
Background
Did you know that London has the highest homelessness rate in the UK? A number of factors are at play here, including the large population, high living costs (particularly rents), and a severe lack of social housing. They combine to make it tough for some people to get safe, secure housing.
Several councils in London have a very hard time providing housing for homeless individuals and families. RBKC is near the top of the list because housing costs in the area are so high. That means they have one of the highest rates of new applications in the UK, outpacing the national trend.
However, while the problem is serious in Kensington and Chelsea, the council does a huge amount of work to improve things. Most crucially, they look for alternatives to temporary accommodation because it puts a serious burden on finances and doesn’t provide stable homes. In fact, according to their data, the number of households in B&Bs and hotels is now at a three year low.
New plan
As a top provider of guaranteed rent and property management in Kensington and Chelsea, we keep an eye on positive news for the area. RBKC’s plan for housing is really notable. It will see them take up to £100m from their pension fund. They will then use the money to purchase up to 250 homes. They’ll use these to provide stable, settled, high quality housing for homeless families.
There are a few important details here. Crucially, the move won’t involve any kind of cost to the taxpayers. Rental income from the properties will be sufficient to pay into the pension fund. It will also cover maintenance and management expenses, making the initiative really sustainable.
Another impressive detail is taking the money from the pension fund will ease the burden on the council. Payments to cover the money they are taking will be far cheaper than the rate of commercial borrowing.
Decision
RBKC made the decision to approve the plan because it will directly improve their housing stock. They’ll get long term leases for the properties so homeless families get stability. The move also aligns with their Housing Strategy 2025-2030 (currently under review). One of the main priorities in the strategy is to reduce reliance on costly temporary accommodation.
Council Leader, Cllr Elizabeth Campbell, said the “pioneering partnership” has the potential to “unlock hundreds of good quality homes”.
Talk to us about property management in Kensington and Chelsea
Finefair Ltd understands how fantastic the right partnerships can be. We work to create them with all of our clients. The foundation of each one is a dynamic service from our team. It can include anything a client needs, including a review of the portfolio, help to find new assets, management, guaranteed rent, HMOs, and much more.
When you work with us, we’ll provide the perfect services to suit your strategy. We’ll also give you the freedom to change what you’re doing if another tactic could provide even more returns. Whatever you need, we can provide consistent property management in Kensington and Chelsea and other parts of London.
So, get in touch if you have any questions for us or want to get started.
