3rd April, 2025 - Research led by the Policy and Evaluation Research Unit (PERU) at Manchester Metropolitan University reveals the Social Investment Pilot (SIP), established during the pandemic as part of the government's "Everyone In" initiative, continues to deliver effective support and sustainable housing solutions for people experiencing homelessness.
In 2021, the Ministry of Housing, Communities and Local Government (MHCLG) partnered with Better Society Capital (BSC) to bring in three fund managers - Bridges Fund Management, Social and Sustainable Capital, and Resonance – to invest £30 million, which was later topped up to £50 million, in buying and leasing properties across England, primarily in London and the North West for people with recent experience of Temporary Accommodation and rough sleeping in areas with high homelessness rates and housing affordability challenges.
The £50m from MHCLG and BSC helped to crowd in another £215m of investment. This included £85m from Local Government Pension Schemes (LGPS), £53m from Charitable Trusts and Foundations and £64m direct from Local Authority budgets. This represented a 5.5x match from private capital on MHLGC’s initial £25m grant.
The pilot has delivered 847 units of homelessness accommodation since inception. Various social investment models were tested, 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.
PERU's findings after two years revealed that participating housing providers, including Nacro, Target Housing, and Stockport Homes, increased their housing stock without borrowing more and provided greater continuity of support services. Key findings include:
- The pilot is targeting need where it is greatest. Over 80% of properties are in the highest 40% of areas by incidence of homelessness. 33% of properties are in the top 10% of areas of acute need.
- Housing providers were able to lease or buy properties of a higher standard than the Private Rental Sector in neighbourhoods with less deprivation and most residents were satisfied with their quality and location, leading to sustained tenancies;
- The model supported housing providers to act more flexibly with, and enhance rapport building with, their clients. The majority of residents experienced improved wellbeing after becoming tenants in SIP-funded properties;
The study also identified some challenges with affordability, such as residents struggling with high rent costs and a small percentage accumulating rent arrears. However, the program has sparked conversations about housing-led service models among stakeholders, policymakers and potential private investors.
Overall, the study found that the SIP remains effective in delivering longer-term, sustainable housing solutions for people who have experienced homelessness, while creating an evidence base to motivate future public and private investment in similar social housing initiatives.
Find the full report here.
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 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."
Christopher Fox, Professor of Evaluation and Policy Analysis at Manchester Metropolitan University said: “The Social Investment Pilot (SIP) 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.”
Notes for editor
These are interim findings from the Year 2 report. The evaluation is being conducted for three years by PERU. PERU’s research team has partnered with housing researchers at the University of Glasgow, Heriot-Watt University, and the University of Cincinnati (originally University of Southern California); research staff at the Centre for Homelessness Impact; and community reporters at People’s Voice Media.
As the pilot did not include a control group, the evaluation was not able to use a randomised controlled trial or a quasi-experimental to compare outcomes against a counterfactual. Instead, the academics used research methods called s process tracing, most significant change, and economic evaluation to analyse the pilot’s implementation and impact, using housing providers’ client case files, through interviews, and by analysing administrative data.
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