Assetz Exchange is set to fund the development of homes for ex-prisoners and people with learning disabilities, which its chief executive says is a gap in the market.
Assetz Exchange, which is part of the Assetz group alongside peer-to-peer lender Assetz Capital, will finance the development of supported living apartment blocks and rent them to local authorities, who will then house people with learning difficulties.
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It will also develop housing that it will rent to the Ministry of Justice (MoD) for ex-prisoners. Stuart Law, chief executive of Assetz Exchange, said the platform is filling a gap in the market, whilst providing a good return for an ethical investment.
“Trying to get people out of an institution and into more normal life in society is a very big issue for the country,” he said.
“We’re helping to provide accommodation for people who need additional care to adjust to society while offering a better yield because charities are paid by the government and can’t find affordable properties to rent.
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“It can cost up to £4,000 a week for local authorities to pay for accommodation and care for people with special needs, with several layers of profit.
“We’re looking to cut out some of these layers of people profiteering and produce savings for local authorities whilst providing a fair yield.”
Law said that there is an undersupply of housing for special purposes and the financial system is failing people in this area.
“The mortgage industry is preventing enough housing in these important segments by not lending to people in this area,” he said. “So, what we’re doing is very good, funding these living segments.”