Inside Housing – News – Dozens of investors call on government to ‘unlock’ private investment to help deliver more social housing

Stephen Muers, chief executive of BSC, said: “The UK desperately needs more investment, which is chronically low compared to our competitors.

“There is a huge opportunity to channel more private as well as public money into investments which improve people’s lives across the UK – including through helping increase the supply of social and affordable housing, as well as delivering a financial return.

“Using calculations of institutional investment available, as well as the track record on specific projects Big Society Capital and Big Issue Invest have delivered over the last two decades, the measures proposed could mobilise up to £50bn of new private investment into driving growth in the first decade of a new government, increasing opportunity and tackling poverty.”

Mr Meurs believes social impact investment is key to delivering social and affordable homes by attracting capital from institutional investors to deliver safe, affordable homes for tenants in desirable areas.

The signatories to the letter also believe there is a need to mobilise private investment for more cost-effective delivery of public services, for example to reduce NHS waiting lists.

Nigel Kershaw, chair of the Big Issue Group and co-founder of Big Issue Invest, said: “There are currently more than 13 million people living in poverty, one in five of the UK population. 

“Of these, nearly four million are classed as destitute, meaning they do not have access to basics like shelter, food, clothing or toiletries. It is time for our next government to focus on prevention, in order to remedy this unacceptable and worsening situation, through more private as well as public investment.”

In response, the Treasury said: “We have a plan for long-term growth of the economy, including unlocking £75bn from pension funds and encouraging them to reach 5% investment in unlisted UK equities.

“This is on top of our Investment Zones programme, which will boost growth in 13 high-potential areas around the UK, bringing investment and jobs across the country, including to West Yorkshire, the Midlands and the North East of England.

“Meanwhile, the Public Sector Productivity Programme is ensuring we deliver a more productive public sector while cutting taxes.”

In January, BSC invested £10m in Octopus Real Estate’s new affordable housing fund to help it acquire its first new homes.