Housing is rising up the list of public concerns, with spiraling rents adding to already-stretched budgets due to the cost-of-living crisis.
Stable, secure accommodation is getting harder to come by, and with home ownership off the agenda for a rising percentage of people, there is a growing risk of homelessness.
Those who are most vulnerable have the fewest assets, and in most cases, this means young people. Those aged between 16 and 25 leaving care, or fleeing difficult family situations, are at heightened risk of falling into homelessness.
Now, the UK’s leading charity committed to tackling youth homelessness has developed an innovative approach to address the issue.
Centrepoint’s Independent Living Programme represents a step-change in youth homelessness provision and, if successful, it could prove transformative.
Combining secure accommodation with stable employment
The Independent Living Programme has a simple aim; it wants to help young people who are homeless, in insecure accommodation, sofa-surfing or at risk of homelessness to move into stable, secure and affordable housing.
Announced in October 2019, the scheme aims to offer a home and entry-level job to 300 young people in London and Greater Manchester. The organisation has called it the most “ambitious” project in its 50-year history and if successful, it could be expanded across the country.
The scheme will begin by constructing 300 affordable and secure homes in London and Manchester.
The rent for these properties will be capped at a third of the tenant’s income, providing them with stable, long-term accommodation.
These will be made available to young people who are at risk of homelessness and have enrolled in the Centrepoint Work Scheme. Applicants will then be matched with a registered employer. The scheme gives young people valuable support with CVs, the application process, and training to help them achieve their employment goals.
As soon as a young person has found work through the scheme, they will then be able to apply for accommodation.
This enables them to secure stable and permanent housing at a capped rental rate. In practical terms, this means that a young adult earning an average salary of £18,000 per year would pay a maximum of £500 per month in rent. This is considerably lower than the current market rates in both Manchester and London.
The benefits for employers
Centrepoint’s Independent Living Programme not only benefits disadvantaged young people but also employers that participate in the scheme.
At a time of recruitment shortages across several industrial sectors, they gain access to a pool of talented, motivated young people who may not have been presented with opportunities elsewhere.
Because the young people will be in stable employment, they can concentrate on following their passions and developing their talents. As a result, the employer benefits from improved employee satisfaction and reduced staff turnover.
A scalable scheme
According to Centrepoint’s data, around 121,000 young people sought assistance for homelessness in 2020/21.
Although the majority of these cases were reported in urban areas, there is an emerging concern about homelessness in rural parts of the country.
A significant number of these cases remain concealed and are often not identified by local support services.
A key figure in the development of the scheme is British entrepreneur and investor, Javad Marandi.
With his extensive background in both business and philanthropy, he brings a wealth of experience to his role as co-chair of Centrepoint’s Growth Board.
Its members provide guidance to senior Centrepoint staff, facilitate fundraising, secure opportunities for land and property development, and contribute novel ideas on how Centrepoint can encourage young people to reintegrate into society.
Together with his wife, Narmina, he founded The Marandi Foundation in 2017, which is committed to providing underprivileged young people and communities in the UK with access to education and training opportunities, as well as support services for mental health and wellbeing.
He firmly believes that the scheme could be scaled up from its modest beginnings to ultimately provide tens of thousands of affordable homes for people of all ages.
According to Marandi, the primary obstacle to the expansion of the programme is its newness so it needs to demonstrate its effectiveness to investors, government officials, and employers.
“It’s never been done before and, as with anything revolutionary, you have to prove the concept to all interested parties: potential investors, national and local government, and employers looking to sign up for the scheme. There is a chance for all to benefit and to be part of something truly extraordinary.” says Marandi.
A track record of delivery
Centrepoint has vast experience when it comes to managing tenants and supporting young people. This record of delivery puts it in a strong position to deliver on its vision of a UK-wide scheme to tackle youth homelessness.
Marandi believes that this makes the scheme particularly attractive to investors.
It currently costs the charity £70,000 to build each new unit but as the scheme grows this figure is likely to reduce considerably.
Key to its success will be investment, offers of land and other material support, as well as a growing number of employers looking to join Centrepoint’s Work Scheme.
It’s a bold and ambitious vision, and if successful, it could transform the life chances of thousands of young people across the country.
