Leeds Action to Create Homes (Latch)

Organisation overview

Since 1989 Leeds Action to Create Homes (Latch) has transformed empty and derelict properties into safe homes across some of the most deprived areas of Leeds. Alongside housing, Latch provides tailored support to help people experiencing homelessness move towards independent living.

To date, Latch has refurbished over 112 properties, supported nearly 500 people and delivered training through its C-Step (Construction Skills Training Employment Pathway) programme, helping participants gain skills, confidence and work experience.

Latch’s impact and innovation have been widely recognised, including being named a Big Issue Change Maker in 2023.

Why social investment

Latch wanted to strengthen long-term financial stability by growing its property portfolio and diversify income. Latch needed upfront investment to build fundraising capacity.

The Homeless Link Social Investment Fund (HLSIF) supported Latch with:

  • a £42,000 loan (with an 8% interest rate over 36 months) and
  • a £10,500 grant

Latch used the investment to:

  • recruit a Fundraising Manager and
  • increase staff capacity to support tenants

Why it worked

The Board and senior team had a clear plan from the start, with strong financial modelling showing the new fundraising role would generate enough income to cover both salary costs and loan repayments.

The fundraising manager focused on:

  • diversifying income
  • raising Latch’s profile
  • developing new funding opportunities

The social investment acted as seed funding, unlocking long-term organisational growth.

Building confidence and unlocking further investment

The use of social investment supported Latch to build confidence to go on to launch two community share offers, which raised £1.1 million to develop 10 additional homes.

Support from Co-operatives UK and Ethex, an ethical investment platform, helped Latch raise the funding.

Outcomes and impact

Social investment helped Latch deliver lasting impact:

  • Completion of the 112th home in 2025
  • Nearly 500 adults and children supported
  • A permanent fundraising role embedded in the organisation
  • Expanded property ownership
  • Increased ability to attract further social investment and grants

Years later, the fundraising role funded by the first social investment continues to strengthen Latch’s sustainability, resilience and growth.

Managing risk and repaying the investment

The Board initially had concerns about taking on loan finance. To address this, the CEO provided detailed financial projections, risk assessments and repayment scenarios. This helped build confidence and ensure shared ownership of the decision.

An interest-free first year, eased early pressure and Latch repaid the loan through increased fundraising and rental income without affecting services.

Following repayment of the first social investment, Latch secured further social investment from Charity Bank and Triodos Bank.

Looking ahead

Building on the success of the two time-limited community share issues, Latch is exploring another open community share offer to:

  • expand property development,
  • invest in publicity and marketing, and
  • grow tenant health and wellbeing services.

“Accessing social investment was a positive experience, we would consider social investment again. When used prudently and with a clear revenue generating plan, it can be an effective way to strengthen organisational capacity and drive sustainable growth. Understanding the need for full costings and a repayment strategy is crucial. We had this, so the process was trouble free for us” James Hartley, CEO, Latch

Key learning for other organisations supporting people experiencing homelessness

  • Plan thoroughly and be realistic about the time and resources required.
  • Use social investment for activities that generate income or strengthen long-term sustainability.
  • Build full cost recovery into all projections.
  • Ensure the funded activity is properly resourced
  • Ensure there is a clear and credible repayment strategy.
  • When approached carefully, social investment can be a powerful tool for growth.

Community Shares

Community shares (also known as share capital) allow people to invest directly in organisations that benefit their local community. This form of financing is used by co-operatives and community benefit societies to raise money for community assets, including affordable housing and community centres. In return the investor

A successful community share offer requires a robust business plan and offer document, clearly demonstrating how the investment will deliver community benefit.

See our resources page on: Plunkett’s guide “Funding a Community Business with Community Shares” for more information about how a Community Share offer works.