In brief: Quantifying the ‘social value’ returns from real estate impact

For every £1 of public and private investment into funds providing accommodation for homeless people, £2.30 in financial and social value could be created over the next 10 years, according to a report commissioned by Big Society Capital.

Big Society Capital commissioned consultancy Alma Economics to analyse the impact delivered by five Homeless Property Funds – which buy properties, refurbish them and lease them to homelessness charities and housing associations – managed by social impact manager Resonance.

The analysis found that the £293 million (€343 million; $375 million) invested so far has generated at least £312 million in public financial savings and will generate £143 million in wellbeing benefits over the funds’ life, totalling £455 million in social value. The total financial and social value could grow to £872 million if the current fund, National Homelessness Property Fund 2, reaches its £300 million target.

NHPF2 is targeting £300 million in commitments by the end of 2024. As well as Big Society Capital, Greater Manchester Pension Fund is among its LPs. BSC declined to share financial performance data of the funds included in the report.