COMMENT Remember the famous Lord Kitchener recruitment poster from 1914, “Your country needs you”? This is the approach Centrepoint is taking to call on the building industry to support our crucial work with youth homelessness. We are not asking for money – we are asking for expertise.
Centrepoint is having to spend millions of pounds every year on professional services, which we believe could be provided on a pro bono basis by our colleagues in the property industry.
Centrepoint’s pioneering property development initiative, the Independent Living Programme, is looking to create 300 quality homes to house young people at risk of homelessness over the next three years. Using innovative construction methods, ILP caps rents at a third of tenants’ salaries. Its homes are created through the development of brownfield sites, or through converting existing properties within communities where demand for lower-cost housing is high, meaning that tenants aren’t required to uproot their lives to find homes they can afford.
Each home costs approximately £70,000, excluding the cost of legal work, planning, conveyancing and the associated costs that come with such a project. This is a significant barrier to an organisation such as ours. If we were able to source professional services on a pro bono basis cognisant of the social value this programme brings, this could really help the viability in delivering these new homes and, therefore, safeguarde the futures of many vulnerable young people.
At Centrepoint we are fortunate to have a strong and varied network of companies that already help with some of the work we are undertaking across the UK. To date we have received a range of advice on a pro bono basis from firms such as PwC, which provided tax advice, JLL, which helped us navigate planning, and GPE, which has provided development advice. SMEs have also provided us with their valuable time and expertise, with PDP Architects offering architectural support, and Nema, which has assisted with planning advice on specific schemes.
GPE’s Ian Cartwright said the appeal of working with Centrepoint is being part of something transformative in the social housing and homelessness sector. However it is also clear the company feels a responsibility from a social impact perspective to contribute to positive lasting legacies.
He said: “There is a growing recognition within the real estate industry that in order for development schemes to be successful, they need to be designed in collaboration with the community as one of our key stakeholders.
“The industry has a long way to go to truly address social impact. Development, when done well, has the ability to be transformative for everyone and it is right that businesses such as ours are being held to account on this by our customers, shareholders and our employees.”
It makes business sense
Centrepoint now needs to tap into a wider audience and is appealing for other businesses in the property industry to step forward. Lawyers, architects, planners, quantity surveyors, consultants and structural engineers could provide incredibly useful services to Centrepoint at limited cost to themselves. This would save the charity significant sums every year, ensuring our funds can go directly to helping and housing young people.
Not only is donating time and expertise to a worthwhile cause incredibly rewarding on a personal level, but it makes serious business sense too.
Firstly, it is clear that young people looking to enter the workforce evaluate a company on not just the role and the salary, but on its ethical and sustainable credentials. People want to work for employers that can demonstrate their commitment to social causes. This can be in a number of ways, from straight financial support to allowing its employees to take time out of their day jobs to support causes close to their heart.
Secondly, it is not only employers, but investors who are taking note of a company’s responsibility to the wider world. Institutional investors and the public sector are increasingly testing a company’s ESG profile by evaluating portfolios and making sure they are meeting their commitments.
While environmental and governance aspects are more high profile, the “S” in ESG has been overlooked. However, the pandemic brought a new focus on social responsibility, highlighting issues such as inequality and job insecurity, as well as providing an obvious moment to reset unsustainable practices.
We believe ILP is one of the strongest social investments available. ILP stands out from other affordable housing developers because of its rent cap policy, and because there is no financial return from ILP to investors it is clear that investments are intended for social impact. Affordable housing is a powerful “S” investment because of its clear social function and importance.
Thirdly, taking action within this space is a great marketing and promotional asset. ILP is a tight-knit community, and Centrepoint is an extremely well-connected organisation. Businesses will improve their networks by helping ILP. It gives its donors the opportunity to collaborate directly but also to meet personally and outside of a work setting. The Independent Living growth board enables networking amongst all partners, from fund managers and tax specialists to architects and suppliers.
Finally, UK businesses that want to work with local authorities have to prove positive contributions to society in order to proceed during the tender process. Companies large and small have to be able to demonstrate their ESG commitments, which makes working with a body such as Centrepoint even more compelling.
ILP has got off to a strong start but needs more help to hit its ambitious targets of building 300 affordable homes for young people escaping homelessness. The more who answer our call, the more we will be able to help some of the most vulnerable in our society to have a safe, secure and fulfilling future.
Whether you’re an investor, planner, contractor, building supplier, tax adviser, developer, project manager, management company or involved in the built services industry in any way, you could really help. And hopefully, in return, we will be able to help you too.
Niamh O’Connor is a member of the Independent Living Growth Board at Centrepoint, the UK’s leading youth homelessness charity providing housing and support for young people in London, Manchester, Yorkshire and the North East. She is an executive director at property company, Summix
