Refugee homes funded by ethical investment

ACH is a thriving social enterprise which delivers the #rethinkingrefugee resettlement and integration programme throughout communities in the West of England and the West Midlands. 

Since 2008 we have successfully resettled over 2000 individuals from refugee backgrounds – developing their independence, promoting their positive contribution to the community and easing their integration into UK life. Many of our staff, including our CEO, have lived experience as former refugees, resulting in a tried and tested resettlement and integration service that is culturally responsive. 

ACH differs from many Housing Associations in that we currently work on a leasehold model, leasing residential properties from private landlords and local Councils in order to be able to quickly react to need. To expand our portfolio, provide us with greater control and financial resilience, and to enable us to address housing waiting lists that outstrip supply, we are aiming to diversify our property portfolio into a freehold model. 

A change of this scale requires significant funding, and we saw social investment as the solution, enabling us to establish a freehold model across our estate, and continue to deliver on our humanitarian promise to our tenants. 

In 2016, we started working with social investment specialist Resonance, looking to create a model of social investment which would enable us to grow as a business, whilst reflecting the values of our staff and tenants. 

For this we needed a financial model which wasn’t dependent on interest. We wanted a social investment model which was fair, not charged on property, and based on our ability to generate a yield from our rental income. 

A Shari’a compliant Yield Sharing investment product was developed, suitable for both ethical and faith-orientated social investors. 

Although social investments and Shari’a compliant investments already exist, this is believed to be the first Shari’a compliant social investment, and the first use of Shari'a compliant finance by a Housing Association. 

Richard Thickpenny, ACH's Business Development Manager, explained "we have transformed a faith based financial agreement into a 21st century FCA compliant ethical legal agreement suitable for social investors from all backgrounds – of all faiths or none. This new investment model has allowed us to purchase our first freehold properties in Birmingham".