Civitas Social Housing, which buys stock from housing associations in order to provide affordable homes, is to launch a £350m equity raise.

The firm will go to the market to raise the money less than a year after it raised a similar amount when it floated on the London Stock Exchange.

Civitas said it has earmarked around £500m of investment for the coming year, to be used to help councils meet their housing requirements for people needing extra care. It had hinted at the need for more equity in a trading update earlier this month.

The company operates by buying up stock from housing associations which need liquidity, and then manages the housing, often through a third party, on long term leases.

It specialises in housing for people with specialist needs, such as those with disabilities or people who have been homeless.

Paul Bridge, chief executive of Civitas, said the pressure on councils to provide better accommodation means the homes are in demand.

“What is underpinning this is statutes like the Care Act said that anyone who was living in an institution or with their parents should instead be in the community. There are hundreds of thousands of people who this affects,” he said.

There are currently around 4.5 million people on local authority housing waiting lists in the UK.

Civitas already provides housing for 82 local authorities in England and Wales, but plans to increase that to around 150 by next year.

It completed its initial public offering in November last year, raising £350m after an initial £250m target was oversubscribed.