The Ethical Housing Company (“EHC”), an affordable private rental housing platform based in Teesside, has completed a new capital-raise that will allow it to scale its support to more than 1,000 people in the local area.

Established in 2017, EHC provides quality, stable and affordable private rental homes for people in housing need across Teesside, let at below-market rental rates and backed by a high-touch support programme designed to sustain tenancies. Around half of the people housed by EHC were homeless or at risk of homelessness before moving in. The platform works in close partnership with Middlesbrough Council and other local stakeholders, including bringing long-term empty homes back into use in underserved areas.

This new round of investment will be led by Teesside Pension Fund, an existing investor in the platform, with additional new capital from the Joseph Rowntree Foundation. JRF is a social change organisation that works through policy, campaigning, funding and social investment to support and speed up the transition to a more equitable and just future. The investment will allow EHC to add new houses to its platform so it can support more people in housing need.

The new capital-raise also represents a successful exit for the Bridges Inclusive Growth Fund, which incubated the Ethical Housing Company back in 2016 and has supported its growth ever since, building on its expertise in quality affordable housing for vulnerable people in the UK.

Natalie Usai, Chief Executive Officer of The Ethical Housing Company, said:

“We’re really grateful for the support of Bridges over the years. As a specialist impact investor, their understanding of how to achieve better outcomes for vulnerable people in the UK has played an important part in our growth to date. We’re also grateful for their help in securing this additional investment from Teesside Pension Fund and bringing in Joseph Rowntree Foundation, whose mission and impact goals are so well aligned with our own. We look forward to a long and productive relationship that will enable us to keep expanding our portfolio of affordable rental homes and helping more people who really need it.”

Emma Thorne, Co-Head of Bridges Inclusive Growth, said:

“The Ethical Housing Company is a great example of how a place-based approach can deliver better outcomes for vulnerable people. We’re really proud of the remarkable impact it has been able to achieve during Bridges’s ownership, and delighted that we have been able to work so closely with Teesside Pension Fund to find this innovative new investment solution that will support the continued growth of the company. We believe the Pension Fund and the Joseph Rowntree Foundation are the perfect long-term owners of EHC, ensuring that it can scale its provision to house more people while keeping impact at the core of its mission.”

Cllr John Kabuye, Chair of Teesside Pension Fund, said:

“The Ethical Housing Company has shown that an impact-led private rental provider can have a transformative impact on the lives of people in housing need in our area. Now we have established this blueprint, we are excited to partner with the Joseph Rowntree Foundation to further expand the platform across Teesside in the coming years, building on the great work done by Bridges, Natalie and her team so far.”

Harmony Chan, Social Investment Portfolio Manager at the Joseph Rowntree Foundation, said:

“A fairer private rented sector that provides decent and affordable homes is fundamental to tackling poverty and financial insecurity. Ethical Housing Company has built a strong track record of delivering exactly that for people in Teesside. We’re pleased to be investing in a platform with such a clear social purpose, and we look forward to supporting its continued growth alongside Teesside Pension Fund.”

Bridges will continue to manage the portfolio on behalf of Teesside Pension Fund and the Joseph Rowntree Foundation. Bridges’ specialist property team will draw on its extensive experience of operating private rental schemes in the residential sector to provide portfolio support, complemented by the expertise of Bridges’ Outcomes Partnerships and Private Equity teams in housing and business growth respectively.