Impact Investments Rank High in Government's Plan to Alleviate Housing Shortage in the UK
The UK government's pledge of £39 billion through the Affordable Homes Programme over the next decade to boost affordable social housing has sparked a surge in impact investment, with over 1.2 million households waiting for social homes and urgent council demand for partnerships with private investors [2]. This trend is further bolstered by the resilient returns offered by social housing investments, underpinned by government and local council lease agreements [2].
In this context, the UK's social impact investment market has grown by 7% from 2022, reaching £10 billion. Notably, pension funds have emerged as the largest investors in this market [1]. The government's recent move to host a roundtable with high-profile investors, including Schroders, Man Group, Resonance, and Homes England, aims to create conditions for further impact investment [5].
However, as of mid-2025, detailed updates or announcements from these specific investors regarding their new commitments towards housing have not been captured in available sources [4]. Schroders, for instance, has focused largely on broader UK real estate market conditions and economic outlook in their latest commentary, with no clear mention of new impact investment commitments towards housing [4]. Similarly, no new or updated commitments by Man Group or Resonance could be confirmed in these results.
Despite this, the commitment from Schroders to invest £50 million from Homes England into its real estate impact fund, with a goal of raising £200 million to deliver 5,000 homes, demonstrates a significant private sector engagement [1]. Resonance, known for social impact housing projects, is expected to increase investment into an initiative tackling homelessness from £79 million to £250 million [3].
Man Group, on the other hand, has plans to invest an additional £100 million to deliver affordable and environmentally sustainable housing in England [6]. Collectively, Schroders, Man Group, and Resonance have planned investments of £550 million (€659 million) to address the UK's housing crisis [6].
The announcement from the government, along with the commitment from these investors, illustrates how social issues like housing can be addressed by harnessing private investment for impact. Stephen Muers, CEO of Better Society Capital, expressed encouragement over the new government recognizing the power of social impact investment [6]. Kieron Boyle, the chair of the UK's Impact Investing Institute, attended the meeting [7].
The meeting also discussed practical ways to leverage capital at scale for public outcomes, including financing underserved SMEs, clean and community energy, and preventative health and affordable housing [8]. As the UK government seeks to build 1.5 million homes over its five-year term to tackle the housing crisis, an ambitious target, accelerating investment is necessary to address increasing inequalities in society, as stated by Stephen Muers [8].
- The government's move to host a roundtable with Schroders, Man Group, Resonance, and Homes England aims to accelerate impact investment in the UK, particularly in areas like affordable housing, energy transition, and development finance, with the goal of addressing increasing inequalities in society.
- The planned investments by Schroders, Man Group, and Resonance collectively amount to £550 million (€659 million), with investments specifically targeted towards delivering affordable and environmentally sustainable housing, tackling homelessness, and providing finance for underserved SMEs, all in an effort to address the UK's housing crisis and contribute to the country's social impact.
