Impact investment, whereby a fund creates beneficial social or
environmental impact, has now grown to £76.8 billion in the UK in
assets under management. This will result in tens of thousands of
new homes are set to be built across Britain funded by over half
a billion pounds worth of impact investments announced today
(Tuesday 15 October).
Coming the day after the Prime Minister announced £63bn of
investment into Britain at the International Investment Summit,
the commitment from three major financial institutions to invest
for impact will directly tackle the most acute housing crisis in
living memory, which includes at least 5,000 new homes to address
social inequality. This supports the Government's priority to get
the country building again, creating more jobs and boosting the
economy.
The announcement comes as the Chief Secretary to the Treasury
this morning hosts a
roundtable in Downing Street with some of the biggest impact
investors in the world, including Schroders, M&G,
International Bank of America, Blackrock and Barclays, as the
Government looks to create the right environment for impact
investment across the country.
Chief Secretary to the Treasury said:
“Investors tell us they want to help in delivering a better
Britain. Working in partnership with government, social impact
investing can change people's lives and improve communities
across the country.
“We are dedicated to creating the right environment for impact
investment across the country, and the announcement of over half
a billion pounds worth of impact investment building tens of
thousands of new homes is a great example of the change that we
are delivering on.”
These three investments funds by Schroders, Man Group and
Resonance are exemplars of private capital responding to major
social and environmental challenges, delivering returns while
also helping to grow the economy, the government's central
mission. Today's £550 million impact investment underpins the
government's drive to foster public-private partnerships to drive
meaningful impact across the country.
Schroders, one of the UK's largest investment managers, has today
confirmed a new £50 million allocation from Homes England, into
its recently launched real estate impact fund. The fund, which
has an initial target of raising £200m with the aim of ultimately
delivering 5,000 homes to address social inequality and deliver
an appropriate financial return to investors, expects to make its
first investments before the end of 2024. It is focused on
helping to deliver more social and affordable housing, regenerate
town centres and invest in social infrastructure, in places where
housing benefits from public transport, green spaces, schools and
GP surgeries.
Man Group, a London-headquartered global alternative investment
management firm managing $178.2 billion, has also announced a
further £100mn investment to deliver affordable and
environmentally sustainable housing for communities across
England, with 90% of homes to be designated as affordable
housing. The investment will have a particular focus on
delivering homes with a low carbon footprint and addressing the
housing needs of key and essential workers. This investment
programme builds on the £385mn that has already been committed to
affordable housing since 2021.
Leading social impact property fund manager Resonance have today
announced an expected 300% increase in investment – from £79m to
£250m - into its initiative to tackle homelessness. This directly
channels investment into residential property to help create
pathways out of Temporary Accommodation for individuals and
families. Resonance has set a target of reaching £1bn investment
in this area in the next five years, so it can work directly with
local authorities and housing partners across the country to help
provide people at risk of homelessness with a stable home.
