The UK social and affordable housing sector sits at the centre of one of the country's most acute and persistent social challenges. Structural undersupply, rising housing costs, and demographic pressures have combined to create a housing crisis that is now visible across every major indicator of need.
Over the past decade, new finance models have emerged to help increase the supply of social and affordable homes. Traditional debt-led financing has faced growing constraints as borrowing headroom tightens — and in response, impact equity investment along with new partnerships have emerged, meaningfully contributing to increasing the supply of good quality social and affordable homes.
This report provides an introduction to this evolving market.
It covers:
- What social and affordable housing funds are and how the market has evolved
- Financial returns, risk considerations, and fund categories
- How to assess impact practice and what good looks like
- BSC's own social and affordable housing portfolio