Impact Investing: making money work for you AND for humanity – By Jon Pedley

Helping others isn´t entirely selfless. Those of us fortunate enough to have money, homes, health and some wealth are recognising that unless we put something back into society then society deteriorates to a point where we are adversely affected. Impact investing describes investments that have a positive effect on society by helping to improve the area where the investment is made environmentally or socially.

Too often impact and ethical investment have been good for society but hopeless for our bank balance. Or hopeless for both! And traditionally ethical investment has never been seen as particularly secure. No more!! We have sourced and stress-tested an impact investment that helps to provide high quality homes for vulnerable families, is underwritten by the UK and Irish governments, and offers the security to investors of a first charge over the property – all whilst receiving regular interest payments without any withholding tax.

More than a million families in the UK and Ireland are waiting for their governments to fulfil the government´s legal obligation to provide affordable housing. We take options on the properties and purchase them only when the government has committed to renting them for a 25 year period. There is no break clause and there are regular rent reviews.  The investment will be impactful because it will help to provide housing for families that cannot afford private rentals – and the rents will be paid by the government under the 25 year index-linked contract. The features of the investment are as follows:

  • Three year investment
  • Minimum £25,000
  • Year one – 8%
  • Year Two – 9%
  • Year Three – 10%
  • Returns paid every six months
  • No withholding tax
  • Investors have a first charge over the property

In a time of economic uncertainty the opportunity to fix your money in a hard currency for three years at a rate far higher than the banks will pay you is a very, very attractive option. So now investors can deploy their money to provide housing for the most vulnerable, receive a tax-free income, and have the guarantees offered by government rental contracts.

Get in touch if you would like to find out more and see videos of some of the properties that we have refurbished and the families who now call them home.