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Government extends not-for-profit company's grant

A not-for-profit company that finds good quality affordable homes in the private rented sector has had its Government grant extended for a further two years.

A not-for-profit company that finds good quality affordable homes in the private rented sector has had its Government grant extended for a further two years.

The Department for Levelling Up, Housing and Communities (DLUHC) last week confirmed funding of £14.1m for a further two years for council membership organisation Capital Letters, which works to help families move out of temporary accommodation or avoid being made homeless.

Around 4,000 homeless families have found homes in the private rented sector through Capital Letters since it was established in December 2018 as a response to the growing homelessness crisis facing London.

DLUHC minister Eddie Hughes said: ‘As a minister sitting in Government, I can tell you Capital Letters is just the kind of organisation that embodies so much of what we need to do.'

However, the Government's latest grant offer represents a cut of £5.7m a year and will end in March 2024, forcing Capital Letters to develop a new business plan to ‘deliver sufficient independent revenue'.

Capital Letters' latest strategic report read: ‘In the medium-term, Capital Letters needs to become financially stable through a combination of developing independent income streams to replace DLUHC grant, funding from members, further Government grant and other income from services provided to members.'

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