A pioneering social investment pilot is making a positive impact in supporting sustainable housing solutions for people experiencing homelessness, reveals a new evaluation.
Researchers from the Policy and Evaluation Research Unit (PERU) at Manchester Metropolitan University evaluated Better Society Capital’s Social Investment Pilot (SIP) which was established during the pandemic as part of the government’s ‘Everyone In’ initiative.
Since the pilot began, it has delivered 847 units of accommodation for people experiencing homelessness and has tested different social investment models including leasing arrangements and property ownership options, to create new housing opportunities for people with recent experience of homelessness while generating financial returns for investors.
Interim findings after two years have revealed that the pilot is targeting need where it is greatest with more than 80% of properties located in the highest 40% of areas by incidence of homelessness, and 33% of properties located in the top 10% areas of acute need.
Participating housing providers including Nacro, Target Housing, and Stockport Homes, have increased their housing stock without borrowing more and have provided greater continuity of support services.
In addition, they were able to lease or buy properties of a higher standard than in the private rental sector in neighbourhoods with less deprivation with most residents feeling satisfied with their quality and location, leading to sustained tenancies.
The model also supported housing providers to act more flexibly and enhance rapport building with their clients resulting in most residents experiencing improved wellbeing.
While the study identified some challenges with affordability, including some residents struggling with high rent costs and a small percentage accumulating rent arrears, the programme has overall continued to be effective in delivering longer term sustainable housing solutions for people who have experiences homelessness, while generating conversations about housing-led service models among stakeholders, policymakers, and potential private investors.
Professor Christopher Fox, research director at Manchester Met, said: “The Social Investment Pilot is making a positive impact on homelessness support. By leveraging public-private partnerships, the pilot is securing sustainable housing for people who have been, or are at risk of, homelessness.
“While still operating at a relatively small scale, with hundreds of properties and promising outcomes, our evaluation shows how the SIP contributes to increased well-being, tenancy security and service efficiency. This pioneering initiative has the potential to inspire future investments demonstrating that social finance can change lives for the better.”
Drew Ritchie, investment director at Better Society Capital, said: “We’re encouraged by the interim report’s findings, particularly the evidence that suggests the Social Investment model has distinct characteristics which can give people experiencing homelessness the best chance of success.
“This is valuable evidence for future investors and policymakers. By partnering with the government and working with these mission-driven fund managers and housing providers, we’ve demonstrated that this model can be used to attract more private investment into addressing housing challenges across the UK.”
In 2021, the Ministry of Housing, Communities and Local Government (MHCLG) partnered with Better Society Capital to bring in three fund managers – Bridges Fund Management, Social and Sustainable Capital and Resonance – to invest £50m in buying and leasing properties across England, primarily in the North West and London, for people with recent experience of Temporary Accommodation and rough sleeping in areas with high homelessness rates and housing affordability challenges.
