The investment arm of The Big Issue has taken a 20 per cent stake in Homes for Good (HFG), the social enterprise letting agency helping to bridge the gap in affordable housing between the social and private rented sector in Glasgow.

The £3 million debt and equity investment has been made by the Social Enterprise Investment Fund II run by Big Issue Invest (BII), and is the largest by the fund since its launch in October 2015. BII has purchased the stake from Impact Ventures UK, an investor in HFG since 2014.

The deal paves the way for further fundraising by HFG, which is looking to double its stock of affordable rental property to 500 within the next for years.

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The investment arm of HFG purchases and refurbishes dilapidated properties, and currently has portfolio of 244 homes in and around Glasgow. HFG also operates a letting agency working with the landlords of a further 250 properties in the area.

Susan Aktemel, founder and executive director of HFG, said the group hopes to have a total of 1,000 properties under management within the next four years supporting more than 1,500 tenants in safe and secure homes.

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“This has created a strong foundation for our future growth, and paves the way for further investment as we embark on a £20m raise in the coming years to deliver our vision of creating high-quality, affordable homes for those who may otherwise struggle to access them,” she said.

Since it was founded in 2013, HFG has raised more than £12m from Impact Ventures, Big Society Capital, Charity Bank and Social and Sustainable Capital. Ms Aktemel and her husband own 40% of HFG through their Craigpark Investments vehicle, while the remaining 40% is held in trust by the HFG letting agency.