The UK is facing a significant housing crisis, with more than eight and a half million people in England unable to access safe, suitable housing, including two million children and many other vulnerable individuals. This urgent challenge presents a critical opportunity for investors, particularly fund managers, to make a meaningful difference. Strategic investment in housing not only delivers essential social impact but can also offer stable, inflation-linked financial returns.
Investors have a vital role to play in driving sustainability within the housing sector. By incorporating environmental performance and energy efficiency into their investment criteria, they can help reduce carbon emissions and improve long-term outcomes. This means evaluating factors such as a property's carbon footprint, adherence to modern building standards and its overall environmental impact alongside traditional financial metrics.
Effective stewardship goes beyond passive investment. It requires active engagement with asset managers to ensure that housing portfolios align with both social and environmental goals. Investors should champion responsible development practices, support tenant wellbeing and promote inclusive housing initiatives. These actions not only strengthen communities, but also enhance the resilience and long-term value of their investments.