Impact investments, as emphasized by the British government, play a significant role in addressing the pressing issue of the housing crisis.
The recently elected Labour government in the UK has taken a significant step towards addressing the housing crisis by incorporating impact investment as part of its broader strategy. This approach aims to increase the supply of affordable housing, support first-time buyers, and facilitate new town developments over the next five years, with a commitment to build 1.5 million new homes [1][3].
In a recent meeting, the government, represented by Darren Jones, the chief secretary to the UK Treasury, sought support from impact investors to generate further impact investment. Stephen Muers, CEO of Better Society Capital (BSC), expressed encouragement about the new government recognizing the power of social impact investment [2].
Discussions at the meeting included leveraging capital for public outcomes, financing underserved Small and Medium Enterprises (SMEs), clean and community energy, and preventative health and affordable housing [4]. The government's intent to generate further impact investment was also emphasized by Darren Jones [5].
The UK's social impact investment market has shown promising growth, with a 7% increase from 2022 to £10bn, as per the report published by Better Society Capital (BSC) [6]. This report also highlighted that pension funds are the largest investors in the UK's social impact investment market [7].
In terms of specific commitments, Schroders has pledged £50m to a real estate impact fund, aiming to raise £200m for 5,000 homes [8]. Resonance expects to increase investment in homelessness initiatives from £79m to £250m, while Man Group plans to invest an additional £100m in affordable and environmentally sustainable housing [9].
The Labour government's initiative to stimulate impact investment for housing and social priorities has also seen the involvement of financial institutions. However, further details about the contributions or commitments of Schroders, Man Group, and Resonance in this context were not detailed in the search results available [10].
It is worth noting that social impact investments in the UK have seen a 12-fold increase over the last 12 years [11]. The UK's Impact Investing Institute recently released a report on the state of impact investment in the UK [12]. By the end of 2023, impact investment in the UK amounted to £76.8 billion of assets under management [13][14].
In conclusion, the Labour government's strategy to address the housing crisis involves a focus on impact investment principles and planning reforms to increase affordable housing supply. While specific public commitments or roles of Schroders, Man Group, and Resonance in this initiative were not detailed in the search results available, further direct sources from these firms or government releases would be necessary to clarify their exact contributions or commitments.
[1] Labour's Housing Plans [2] BSC CEO Encouraged by New Government Recognizing Power of Social Impact Investment [3] Labour's Housing Plans: Affordable Homes [4] Discussions at the Meeting [5] Government's Intent to Generate Further Impact Investment [6] BSC Report on UK's Social Impact Investment Market [7] Pension Funds as Largest Investors in UK's Social Impact Investment Market [8] Schroders' Real Estate Impact Fund Commitment [9] Resonance and Man Group's Investment Plans [10] Roles of Schroders, Man Group, and Resonance in Labour's Housing Initiative [11] Growth of Social Impact Investments in the UK [12] UK Impact Investing Institute Report [13] Impact Investment in the UK Amounted to £76.8bn [14] Impact Investment in the UK Amounted to £76.8bn - BSC Report
- The Labour government's strategy for addressing the housing crisis includes leveraging impact investment to increase the supply of affordable housing, support first-time buyers, and facilitate new town developments over the next five years.
- The UK's social impact investment market has shown growth, with a 7% increase from 2022 to £10bn, as per a report published by Better Society Capital (BSC).
- Schroders has pledged £50m to a real estate impact fund, aiming to raise £200m for 5,000 homes, and Resonance expects to increase investment in homelessness initiatives from £79m to £250m.
- The Labour government has sought support from impact investors like Schroders, Man Group, and Resonance to generate further impact investment for housing and social priorities, with details about their contributions or commitments still to be clarified.
