Renting a home in London can be very difficult for households on low incomes. This situation has accentuated over recent years as the London economy has performed well, and house prices have continued to climb.
Capital Letters has been created to provide good quality homes for renting in London to help prevent statutory homelessness.
Capital Letters is being established by 13 London boroughs initially, with the support of the MHCLG and London Councils. It is intended that more London boroughs will become members of the company in future phases, so that Capital Letters will become the main source of private sector accommodation to prevent and relieve homelessness in London. The company enables the London boroughs genuinely to act together in procuring accommodation for renting, rather than competing with each other for accommodation across London.
By pooling resources and sharing expertise, Capital Letters will provide a better service to both Private Sector Landlords and Tenants. It will make more efficient use of resources and become a more significant participant in the London Housing market.
The company will achieve better value for money for the public purse in accommodating households who are homeless or at risk of becoming homeless. At scale it will represent a market intervention. It will allocate properties as locally as possible, so that less households are obliged to rent a significant distance from their
home area.