Registered Providers of Social Housing (RPs) are entities providing, or intending to provide, social housing in England that are registered with the Regulator of Social Housing (RSH).
RPs are the principal owners and developers of homes in the UK social housing sector.
The regulatory environment for social housing requires high standards of governance, financial viability and resident welfare which is embraced by Gresham House’s UK housing team and forms a core part of our investment analysis.
Gresham House manages two RPs through separate UK housing funds: Residential Secure Income plc (ReSI plc, LSE: RESI) and Gresham House Residential Secure Income LP (ReSI LP).
Both funds invest in Shared Ownership through their respective wholly-owned RP:
Both our RPs are designated as for-profit which allows them to raise equity for new investment into the social housing sector.
Our investments in Shared Ownership have dual primary objectives, to:
1) Provide investors with stable and secure long income returns that contractually rise with inflation, and
2) Fulfil a key societal need by lowering the lifetime cost of housing for lower and middle-income earners such as key workers
We are committed to delivering best-in-class shared ownership investment products while driving best practice across the sector. That commitment is underlined in our Best Practice Paper along with our Shared Ownership Customer and Environmental Charters, which address the aspects of shared ownership that have attracted criticism in the past, as well as committing to delivering homes that are sustainable for the long term.
Owning a Registered Provider allows ReSI plc and ReSI LP to invest:
Through its two RPs, Gresham House is able to facilitate increased investment and development in the social housing sector and support the development of new homes across the country. We do this in two ways:
1. Developing new shared ownership homes, through forward funding or forward purchase arrangements – with a focus on delivering additionality of new affordable housing beyond what planning requires; and
2. Acquiring tenanted portfolios of shared ownership homes from Housing Associations and Local Authorities – allowing them to recycle capital into developing new homes and investing in their existing rented stock.
Our RPs are flexible and can invest directly or in joint ventures, and we can manage properties directly through our in-house team or using local partners.
To find out more about how Gresham House can help contact firstname.lastname@example.org
As long-term capital partners, ReSI Housing and ReSI Homes can support Housing Associations in realising their development and investment ambitions by recycling capital locked up in existing assets, while they continue to manage and maintain the stock, with unique management agreements in place that are tailored to meet the objectives of the partnership.
Staircasing makes it difficult to use Shared Ownership as security for raising debt, so the asset is underutilised in this respect. In contrast, recycling the properties with our RPs’ support allows tomorrow’s staircasing receipts (from the partial sale proceeds from the resident) to fund development today – generating further development profits without stretching the balance sheet.
By entering into a series of such transactions with ReSI Housing and ReSI Homes over time, Housing Associations can repeatedly recycle their capital to support and enhance long-term development ambitions and continue to benefit from a development margin on each tranche of sales.
There is no ongoing balance sheet liability to the housing association, and there can be options to transfer capital grant along with the properties and/or structure the transaction to retain a share of staircasing profits.
To find out more about how Gresham House can help Housing Associations contact email@example.com