Homes England Commits £50 Million to Tackle Housing Crisis through Schroders Capital Fund

United Kingdom, October 2024: The UK government's housing and regeneration agency, Homes England, has allocated £50 million to Schroders Capital's Real Estate Impact Fund, SCREIF. Being one of its largest investments, it again proves how impactful this flagship investment has become in addressing social inequality in the UK.

This Confirmation is part of a series of critical measures taken by the Ministry of Housing, Communities and Local Government, which funds Homes England, and HM Treasury. The Chief Secretary to the Treasury has hosted a roundtable following a set of activities by the UK Government to support its International Investment Summit.

The Summit has concentrated on investment and growth across the UK, attracting up to 300 leaders from the industry. Among notable attendees includes UK Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business and Trade Secretary Jonathan Reynolds.

SCREIF is a real estate-focused strategy aimed at creating positive social and environmental impacts as well as appropriate risk-adjusted returns for investors. In March 2024, it was only the second UK real estate fund approved by the Financial Conduct Authority to use the 'Sustainability Impact' label under SDR.

It will be primarily residential-led in the form of a fund that focuses on the UK housing crisis, looking at issues such as the shortage of social and affordable housing and town centre regeneration. Given the location aspect, it is ready to invest in places that are easy to access and resilient while having proximity to green spaces, public transport, schools, and healthcare facilities.

The investment will improve Homes England's capacity to scale and deploy further across the United Kingdom. It will also help bring in more inflows from pension funds, insurers, and foundations.

Chris Santer, Fund Manager for Schroders Impact Fund at Schroders Capital’s Real Estate team, said in the Press Release by Homes England, “This investment by Homes England is a clear indication of the absolutely vital role this fund is looking to play in the UK by delivering real and tangible change. Our homes, and the built environment around us, impact our daily lives. We believe this allocation from the public sector will be catalytic in unlocking further institutional investments, boosting broader confidence and interest in this key sector meaning the fund can enable more communities to thrive across the UK.”

Peter Denton, Chief Executive of Homes England, was also quoted saying, “This is a brilliant example of how public and private sector organisations can get behind a clear and common aim – namely supporting social justice and thriving communities. Our commitment aims to help spark deep and diverse market investment from a range of institutions. Fundamentally, this is about coming together to accelerate regeneration and the creation of affordable, high-quality homes within sustainable, thriving places that people, especially those in more deprived areas, want, need and deserve.”

The £50 million Homes England investment into Schroders Capital's Real Estate Impact Fund (SCREIF) shows that the UK government is fully serious about addressing social inequality and the housing crisis. Tied to more comprehensive measures unveiled by the Ministry of Housing, Communities and Local Government and HM Treasury, this particular funding is toward meeting the goals of the International Investment Summit. Industry leaders and top-ranking government officials have been attending the summit.

Since the funds focus on increasing positive social and environmental impacts while ensuring that they produce risk-adjusted returns, SCREIF was certified by the Financial Conduct Authority with the 'Sustainability Impact' label. The residential-led approach of the fund addresses social and affordable housing shortages and creates regeneration opportunities in town centres through the investment made inaccessible and resilient locations. This investment will increase the fund's potential to scale up across the UK, thereby attracting more investments from pension funds, insurers, and foundations.