SCH are aiming to raise between £100,000 and £2,000,000 in their 2019 raise. Raising the lowest amount will enable them to provide the deposit for the purchase of a property for Glasgow Student Housing Co-op, coupled with a loan which has been offered by Scotmid Co-operative.
This would make Student Co-op Homes financially viable and would kick off the growth of the sector. This would be a great start, but of course SCH would like to be able to do much more! If they can raise their maximum target of £2m SCH will be able to buy around 25 properties, allowing them to double the number of students living in housing co-ops across the country, while generating enough income to employ full-time staff and become completely self-sufficient in self-financing its growth.
SCH will use mortgage finance to top up the money raised through the 2019 offer to buy properties. The Scotmid Co-operative has already agreed a £300,000 loan to SCH to finance up to 90% of a property for Glasgow Student Housing Co-operative. SCH have also approached lending institutions for mortgages to finance other projects.
Below are indicative figures of the share investment needed by the student housing co-operatives ready to take on properties right away (these figures are based on using the funds raised for a deposit of around 30% of the property’s value):
- Glasgow Student Housing Co-op: £90,000 – £150,000
- Nottingham Student Housing Co-op: £120,000 – £200,000
- SEASALT Housing Co-op (Brighton): £350,000 – £800,000
Beyond the properties that will be directly financed, SCH consider that the bigger impact of this offer is the start of a new co-operative movement in the UK and the establishment of a viable and scalable business. SCH aim for Student Co-op Homes to grow and be replicated for the co-operative model to become a dominant player in the student housing sector.