21 November, 2024
General News

Centrepoint’s plan to combat youth homelessness

1,974 Comments08.9k

Centrepoint is the leading UK charity working to tackle issues around youth homelessness.

It is known across the country for its work, providing housing, support and outreach work for young people aged 16-25. A key objective is to support young people in escaping a cycle of poverty and homelessness as they attempt to build independent adult lives.

With the rising cost of living and a growing shortage of affordable properties, homelessness is once again on the increase. Young people are particularly vulnerable, with data from Centrepoint showing that approximately 121,000 young people asked for help with homelessness during 2020/21.

A new scheme aims to address the issue head-on, providing not just a short-term fix, but a potential long-term solution that could be scaled up across the UK. The Centrepoint Independent Living Programme is being co-chaired by entrepreneur and philanthropist, Javad Marandi.

It combines affordable accommodation with employment opportunities and support to give disadvantaged young people the best chance of success.

How the scheme works 

The principle behind the Independent Living Programme is simple. The charity is already building 300 affordable housing units for young people in London and Manchester. To access the scheme, disadvantaged 16-25-year-olds will need to secure employment through the Centrepoint Work Scheme.

This established employment initiative gives young people essential skills, and access to training and support in finding employment. Employers sign up with the scheme providing a first step on the employment ladder for disadvantaged young people who receive support to help them make the transition.

As soon as they enter employment they are then able to apply for accommodation through the Independent Living Programme. This gives them access to stable, long-term accommodation with a rent that’s capped at a third of their salary. In practice, this means that a young person receiving around an average salary for their age of £18,000 will pay no more than £500 a month in rent.

This represents a considerable discount on the current market rent for new tenants in both London and Manchester.

A bold vision for the future

The Centrepoint programme sets out a blueprint that could be scaled up over time. While it begins with 300 housing units, with investment, land and employer support, the aim is to grow that number to 30,000 homes across the UK.

“I am confident that when we can show concrete evidence of how this scheme works, both practically and economically, we will be looking at building 30,000 homes across the country, helping people whatever their stage of life,” says Marandi.

As co-chair, Marandi brings a wealth of experience in business as well as philanthropy.

In 2017, he founded The Marandi Foundation, with his wife Narmina, which is dedicated to providing disadvantaged young people and communities in the UK with access to training and educational opportunities, as well as mental health and well-being support services.

To help realise the Centrepoint vision, the programme will need would-be employers to get involved as well as investors. Currently, every home that is built through the scheme costs up to £70,000. As more companies support the programme, then this cost is likely to decrease. It’s a business model that Marandi believes is economically viable.

“At the moment, the biggest hurdle to the growth of Centrepoint Independent Living is the novelty of the programme,” says Marandi. “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.”

Centrepoint is highly experienced at managing properties, and the scheme is already producing yields in line with the current commercial rates. They predict that yields will reach two to three times the current rates, making it very attractive to investors across the board, including pension and investment funds. 

A partnership for the future 

The Centrepoint Independent Living Programme brings together the voluntary and commercial sectors in a mutually beneficial project. If it proves to be successful, it could transform the lives of thousands of the most vulnerable and disadvantaged people in our society.

News Team

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