Empty Homes JV Solution

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Empty Homes JV Solution

  • Private owner invests empty, disused home into joint venture at cost given current use and condition.
  • Developer invests cost of refurbishment and redevelopment into the JV.
  • Developer works with social firms that train and employ long-term unemployed, ex-convicts, people that have experienced homelessness, re-skilling them with skills in the building and construction trade.
  • Home is sold at market.
  • Cashflow waterfall:
1.[Repay any joint borrowings including cost of finance/ interest]
2.Payback initial JV investment (cost of house and development costs)
3.Split net proceeds on agreed basis (could be 50/50 or based on proportion of site cost to development cost)


  • Owner: Habitable house is easier to sell than a disused house, development costs are borne by someone else.
  • Social firm: Employment opportunity and possibly chance to share in upside upon sale of the house.
  • Developer: Possible upside/ share of profit intended to fund future projects.


  • Owner probably prefers selling the site as-is and avoid risk of re-sale and market forces on selling price.
  • Selling price might not cover site and development cost.
  • Can be mitigated through research into local area and talking to local estate agents about potential re-sale value.
  • Target homes are individual disused homes on otherwise good streets (i.e. obvious outliers) in attractive neighbourhoods.
  • Using a social firm for the construction work might extend redevelopment period and increase costs of construction (especially if there is loan finance and interest).
  • How does developer fund the costs of the first project?


  • Disused home is put back into use.
  • Training and employment opportunities for beneficiaries of social firms.


  • Can this be done with homes owned by local councils?
  • If this were done with a council-owned home, could the home be sold at a pre-agreed price (with a built-in profit) to a registered social landlord and kept as affordable housing, on condition that the profit be used towards future projects?
  • Can this be done with home owned by registered social landlords/ housing association?