You are here: Home - Investing - Experienced Investor - News -

New bond tackling social housing shortage pays 7%

Written by:
A new investment aimed at tackling the UK’s social housing problem has launched, offering 7 per cent interest.

The investment is via a debenture, which is a tradeable form of corporate bond, in Pax Apartments Ltd, and is available through peer-to-peer ethical investment platform, Abundance. It offers 7 per cent annual interest for a 19-month term.

While the headline rate may turn some heads, it’s worth remembering that these schemes are high risk. Investors may not get their capital back and these investments are not covered by the Financial Services Compensation Scheme, so there’s no compensation if something goes wrong.

Pax Apartments Ltd hopes to raise £3.1m to complete the redevelopment of a warehouse in Liverpool’s Ropewalks area. It plans to create 33 one and two bedroom apartments, which will be let as supported living accommodation and affordable housing to households on local waiting lists.

The apartments will be maintained and managed by a registered social landlord.

Liverpool has 16,500 people on the council waiting list looking for homes. Across England, more than a million households are waiting for social housing, according to 2018 data from housing charity Shelter.

The minimum investment is £5, and the debentures are eligible to be held in an Innovative Finance ISA so returns are tax-free.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week