Before our Social Impact Housing event in Manchester, we had the pleasure of catching up with Julie Thompson, the Founder and CEO of Yale Housing. During our conversation, we delved into Social Impact Housing and explored Julie’s journey into the industry. Her insights and experiences shed light on the importance of this sector and her commitment to making a difference in the lives of vulnerable communities.
Can you give us a quick overview of Yale Housing and the service you provide to the community?
Yale is a housing association headquartered in Oldham [Greater Manchester]. We are a registered CBS [Community Benefit Society] charity and registered with the FCA [Financial Conduct Authority].
We support people with low-level disabilities, from those that might not be able to read or write to people those with autism or asperges. Our housing officers give them the support they need. This could be reminding them when the bins go out, checking to see if they are on the right benefits, or protecting them from people that might try to exploit them. They get support three times a week for welfare and one hour a week for property related issues. This could be checking the windows, making sure they have their keys, and checking the smoke alarms are working and that there are no trip and fall hazards.
How did you get into the social impact housing sector?
I started out as a mental health nurse. I loved working on the wards, but I found it very prescriptive, and boundary driven. People were being medicated, moving on from the ward but coming back after several weeks. It was usually because the property [they were housed in after leaving] was not fit for purpose or the support they were given failed to meet the needs of that person.
I learnt very early on that I can’t do something I don’t believe in. I have to work with people that have the same ethos as me, which is why I decided to get out of what I was doing and try to make a difference. I set up my own residential home, which I have had for 22 years now, and nine years ago, I set up Yale to help people who do not need 24/7 care but do need intense housing management and a proper support system to help them live in the community.
What makes you so passionate about Yale and Social Impact Housing?
We do things differently. Our tenants can come into our hub [a community property located close to Yale’s Social Impact Housing schemes where tenants can meet], have a brew with us, have breakfast or lunch, talk to us about their problems, or enjoy a range of social activities from movie nights to Scalextric. They have fun and it really helps with their self-esteem. Feeling comfortable at home is essential for emotional well-being. This concept aligns with Maslow’s hierarchy of needs, where security and home form the foundation for fulfilling other needs. Social impact housing addresses this foundational need, creating positive change in people’s lives.
Our properties are equipped with top-tier heat pumps and insulation, ensuring a low carbon footprint and helping tenants escape fuel poverty. We are also planning to install solar panels on all our Yale stock in the near future. It is also important because you cannot rent a property that has an EPC [energy performance certificate] rating below C.
Investors care about the returns, which are very good by the way, but they also care about social impact and the contribution their investment is making on society.
What do you personally like most about working with E.R.E?
The fabulous people. People that are committed to learning about the industry and what they are selling. People with passion who are enthusiastic about what they are selling.
How many Social Impact Housing units do you have under management and how many do hope to have by the end of the year?
I have just about 1000 developments at present. This number highlights the prolonged neglect of vulnerable people in our society. Our goal is to maintain the quality of both our services and properties while expanding our efforts to reach as many areas as possible.
Are there any locations you are hoping to get over the next 12 months?
We need to ensure the right timing and the right property, along with a sustainable demand that allows for growth. We avoid speculative investments, particularly in this sector. We are excited to expand further into the South, having already established a presence in the North West, North East, Midlands, London, and Wales. We welcome anyone to reach out for a chat or to discuss over a drink at any time. People can come to us for a chat or discuss over a drink anytime.
How strong is the demand for Social Impact Housing properties and how do you foresee this changing over the next 5 to 10 years?
You could not meet demand. On top of the huge demand, we already had, I am now being asked [by the government] to house asylum seekers that have the right to remain, which is adding to the list. We also have a huge backlog from Covid as well as more people diagnosed with mental health.
The supply of properties has failed to keep up with demand for years and years and the cracks have been coming. I get over 1,000 referrals a week and I do not have a void. I have been doing this since I was twenty-four and never managed to sustain the need, but I’ve never seen such a huge gap [in supply] as what there is now.
Social Impact Housing has higher yields than typical Buy To Let. What is it about the way Social Impact Housing is structured that makes this possible?
Rent is not paid privately; everything is paid directly by the DWP [Department for Work and Pensions], so the rents are guaranteed. The government want to keep people in their tenancy because they do not want the homelessness numbers to rise, so evictions are extremely rare.
We also continue to pay rent during voids. With Buy To Let, if a property needs redecorating, for example, you won’t get rent. We get an 8% increment every week for each tenant to cover voids. And we do repairs ourselves, so voids are kept to a minimum. It is a very hands-off investment.
Why do you feel Yale Housing innovating the standards in Social Impact Housing?
For years, this sector has been run by corporate businesspeople, who have done a fantastic job with the property, but they do not know about the people – those with disabilities and mental health. I have a little moto ‘not any roof will do’ and that is what I think has gone wrong. With my background as a mental health nurse, I understand that at Yale it is not just about the property, it is about the care.
The location is the first thing for us. Most of our tenants do not have cars so we make sure our properties are close to amenities. You must be able to walk to the doctors, chemists or supermarket. If I see trainers hanging over telephone wires, I will not take the property because it means there’s drug use going on in the area and that is a huge problem for our tenants. On some days we start work at 4 and work till 10 in the night, to provide companionship to those who feel isolated in the evenings.
If I put six employees in front of you, all from different housing associations, you would be able to pick which one was from Yale. If you asked them what the heart of Yale is, they would say the hub. On Friday afternoons, no matter who you are in the company, me, the MD, we all go to the hub, have a meal together and some banter.
If you are interested in Social Impact Housing investment opportunities, contact us today to speak to one of our investment consultants.
