CDS Co-operatives, recently agreed a ‘cornerstone investment’ of £1.25m in the Collective Ownership Society.

This new capital will be used to finance the first property acquisitions for its members, attract further investment and kick start the development of a new co-operative housing solution to intervene in the private rented sector with a fairer alternative that works in the interests of both immediate and future residents, and addresses the wider UK housing crisis.

Collective Ownership is a carefully crafted, innovative and scalable form of ‘tenure’ that provides stable, secure and affordable housing, controlled by residents. It is delivered through a high impact, efficient, not-for-profit investment vehicle: The Collective Ownership Society.

“CDS is proud to support Collective Ownership in bringing resident control to the private rented sector at scale” said Tom Bremner, chief executive at CDS Co-operatives. “We believe this innovative approach grows from our history and purpose and will also provide a better return than keeping our reserves in a savings accounts. This is something others in the sector should consider.”

As a specialist Housing Association managing around 3000 properties across London and the South East, CDS has a track record of establishing and supporting housing co-ops over the past 50 years. CDS also provides in-kind support to set up the Collective Ownership Society.

“This investment is a testament to the immense potential of our model, and the vision of CDS in bringing it forth” says Gauthier Guerin, of Collective Ownership. “We’ll use this to increase the equity we can bring to initial acquisitions, acting as an enabler for groups of residents. The impact of investment goes beyond funding one-off purchases, as assets and surpluses are reused to continuously grow the number of homes in Collective Ownership. Investment terms are flexible and open to organisations, individuals and residents.”

The Collective Ownership Society is an FCA-registered secondary housing co-operative (a “co-op of co-ops”) with seven housing co-op members, and more looking to join. It is based on mutualising property assets and rental income to build economic power, whilst ensuring residents have day-to-day control over their homes and communities. The Collective Ownership Society acts as a professionally run ‘property fund’ collectively owned by housing groups. It provides diverse investment opportunities, reduces risk and enables efficient asset transfer, tax treatment and use of funds.

The CDS investment is complemented by a further £100,000 investment from a supportive member of the public. Collective Ownership is open for further bond-style social investment from a wide range of organisations and individuals here: www.collectiveownership.co.uk/#invest