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Government gives £14m to private rent company owned by London councils
The government has announced more than £14m in grant funding for a company set up by a number of London councils to tackle the homelessness crisis.
Eddie Hughes, the minister for rough sleeping and housing, announced the funding at a conference hosted by the company, Capital Letters, earlier this week.
The grant funding will last until 2024. Capital Letters said it is developing independent sources of income to ensure the services it provides for homeless families will continue when the grant ceases.
This includes negotiating with property portfolio investors, alongside a plan to become a landlord itself, the council-owned company said in a statement.
Capital Letters is a not-for-profit company that was set up in 2019 to find good-quality affordable homes in the private rented sector so families can move out of temporary accommodation or avoid being made homeless.
It is owned by 21 member councils and has helped around 4,000 homeless families find homes in the private rented sector since it was set up.
Three more councils are expected to join this year, covering three-quarters of the boroughs in London.
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“By working collectively with Capital Letters, our member councils are driving up standards in the [private rented sector], reducing costs and increasing the supply of affordable homes for homeless families across London,” said Sue Coulson, chief executive of Capital Letters.
“We are improving the experience for both tenants and landlords, with the private rented sector as a key element of members’ homelessness-reduction strategies.”
Ms Coulson said the partnership between London boroughs can reduce the cost of homelessness provision significantly and create more opportunities for families to move out of temporary accommodation and settle into a secure and safe home.
Capital Letters also provides a free tenancy-sustainment service for both tenants and landlords to ensure the tenancy has the best chance of success. This includes help with new benefit claims, setting up utilities and sign-posting households to other services.
In 2021/22, the company secured more than £750,000 for 300 families through grants and back-dated benefits.
Capital Letters is also developing new services to increase housing supply and make letting to families referred by councils more attractive to private landlords.
Planned services include rent collection and protection, bonds and property management.
“We’re pleased the government is continuing its funding support for Capital Letters,” said Darren Rodwell, London Councils’ executive member for regeneration, housing and planning.
“This is important recognition of Capital Letters’ impact and a valuable boost to boroughs’ collaborative work in support of homeless Londoners.”
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