Finding innovative housing solutions
We have a 17 year track record of managing and maintaining properties for people with a learning disability. Over that time we have steadily acquired a portfolio of 425 properties worth £95.4 million at historic cost (net assets £26 million), plus a further 312 properties which we lease (31 March 2016 audited figures).
Our properties are mainly individual houses and bungalows in many different locations across the country. They are high quality properties which more than meet the Decent Homes Standard and are typically located in attractive residential areas.
Almost all of our income is in the form of rental income. Most of our tenants pay rent at the higher, exempt level of housing benefit. This is paid by the local authorities direct to us as the landlord. We therefore benefit from a stable, Government-backed rental income flow.
Consistent with our objective of growing our charitable impact we are working on an exciting new off balance sheet financing solution possibly in partnership with other medium to larger sized charities.
Social Stock Exchange
GLH gained membership of the Social Stock Exchange in December 2014. Raising £21 million through bonds has put us at the forefront of impact investing in the UK.
Working with Mencap and Bangor University we have assessed the impact both on the individuals who have moved into housing purchased using the 2013 Bond money and on their families.
2014 Retail Charity Bond
GLH raised £11 million from investors which is the first charity bond listed on the London Stock Exchange’s Order Book for Retail Bonds. The 2014 Retail Charity Bond capital is being used to buy and adapted homes for people supported by Mencap.
2013 Social Investment Bond
GLH’s 2013 Social Investment Bond has raised £10 million from social investors in the form of an unlisted bond. We have used the £10 million to buy 27 properties across the country which are now home to 99 tenants with a learning disability.
2003 Social Investment Bond
The 2003 Social Investment Bond was redeemed on 30 April 2013. We have benefited from the generosity of the bondholders in enabling us to provide deposits to support commercial borrowing.
GLH has a number of long standing bank loan facilities including loans with the Nationwide Building Society and Triodos Bank NV.
Mencap as the parent company of Golden Lane Housing originally invested £9.15m in GLH in 2003. This low interest loan over 25 years continues to support the growth of both GLH and Mencap businesses.
GLH became a Registered Provider of social housing in England in January 2015. The Homes and Communities Agency’s decision provides GLH with an additional level of protection in respect of our exempt rents. It also opens up other opportunities in terms of accessing finance and partnering with other Registered Providers and commissioners.
We will now be regulated by the Homes and Communities Agency around rents, tenants, governance and financial viability.