15th Oct 2024 06:50
(Alliance News) - The UK government said impact investing will help to tackle the housing crisis as it announced private sector commitments to put hundreds of millions into building homes.
Schroders PLC, Man Group PLC and Resonance Ltd announced new impact investment funds on Tuesday – pots of money that aim to create social or environmental impact.
These will help to address directly the shortage of homes by supporting the building of tens of thousands of new homes across the UK, the Treasury said.
It comes as the government looks to unlock investment to deliver on its aims to build 1.5 million new homes over the next five years.
Chief Secretary to the Treasury Darren Jones is also preparing to host a roundtable with investors at Downing Street on Tuesday as part of efforts to foster public-private partnerships that can address social and environmental challenges, including affordable housing.
Schroders, M&G PLC, International Bank of America, BlackRock Inc and Barclays PLC are all expected to attend, the Treasury said.
Jones 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."
Schroders, one of the UK's largest investment managers, confirmed a new GBP50 million allocation from Homes England, into its recently launched real estate impact fund on Tuesday.
This fund has an initial target of raising GBP200m and ultimately aims to deliver 5,000 new homes, with plans 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.
Meanwhile, Man Group, a London-headquartered global alternative investment management firm, said it will invest GBP100 million to deliver affordable and environmentally sustainable housing for communities across England, with 90% of homes to be designated as affordable housing.
This investment will have a particular focus on delivering homes with a low carbon footprint and addressing the housing needs of key and essential workers.
And Resonance, a social impact property fund manager, announced plans for a 300% increase in investment – from GBP79m to GBP250m – 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.
The firm has set a target of reaching GBP1 billion in investment in this area in the next five years.
By Rebecca Speare-Cole, PA sustainability reporter
Press Association: Finance
source: PA
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