CoHouse believes it is possible to unlock the social value of private rented housing, while making market level returns to investors. Our model provides amazing homes in desirable locations at affordable rents, delivering robust income as well as positive outcomes for people, places and the planet.
Part of the solution is delivering at scale. The private rented sector is dominated by small scale landlords, pursuing high stake strategies to secure small margins. The goal is often short-term, reducing this vital sector – which houses more than a quarter of the capital — to nothing more than yields and property values.
CoHouse works with a new breed of impact investor motivated by generating financial returns in ways that also realise the potential of capital to unlock other forms of value, such as social or environmental. There is rising tide of interest in influencing flows of private capital to tackle entrenched issues, previously considered the preserve of governments or philanthropy.
The financialisaton of real estate – where property is solely looked at through the lens of revenue and profit – has led to a disconnect between financial value creation and social value creation.
Lisette van Doorn, CEO, Urban Land Institute Europe (March 2021)
