Prime Minister Sir Keir Starmer has welcomed a £550 million housing investment to tackle the housing crisis and get “Britain building again.”
Schroders, Man Group, and Resonance announced new impact investment funds on Tuesday. The Treasury said the money, which aims to create a social or environmental impact, will help build tens of thousands of new homes.
Speaking to “BBC Breakfast,” Starmer said the government would like to raise the investment volume to over £1 billion.
“We’ve said as a government we’re going to fix the foundations, rebuild our country, and expressly saying ‘now is the time to back us.’
“Companies and investors are coming in today saying ‘here’s half a billion pounds.’ We want to raise that, by the way, I want that to be up over £1 billion before too long,” he said.
According to the Treasury, the commitment from three major financial institutions will directly tackle “the most acute housing crisis in living memory.” This includes 5,000 new homes to address social inequality, homes with a low carbon footprint and homes for people at risk of homelessness.
The investment from Schroders will be used to bolster social infrastructure in places where housing benefits from public transport, green spaces, schools, and GP surgeries. The £100 million committed by London-headquartered Man Group will cover housing across England, with 90 percent of homes to be designated as affordable housing.
Elsewhere, Resonance plans to increase its investment from £250 million to £1 billion and work with councils to tackle homelessness.
Building Plans
Labour has previously said that while greater investment support economic growth, the government recognises the need for reform in parts of the UK economy. It has vowed to reform the planning regime to boost construction and housing supply.The government announced on Tuesday that it had secured £68 million for 54 councils to develop abandoned brownfield sites into new homes.
Local authorities will be able to use the funding to cover the costs of decontamination, clearing disused buildings, and improving infrastructure, such as internet, water, and power.
The money will go to Manchester, Eastbourne, Weston-Super-Mare, and Northampton, among other parts of the country. It will fund the transformation of industrial sites, bus depots, and vacant brownfield sites into homes.
Starmer said he is committed to the government’s promise of delivering 1.5 million homes over this Parliament.
“I said this government is on the side of the builders, not the blockers. And I meant it. This funding for councils will see disused sites and industrial wastelands transformed into thousands of new homes in places that people want to live and work. Our brownfield-first approach will not only ramp up housebuilding but also create more jobs, deliver much-needed infrastructure, and boost economic growth across the country,” he said.
On Tuesday, the Treasury is hosting a roundtable with high-profile investors. Chief Secretary to the Treasury Darren Jones is meeting with Schroders, M&G, International Bank of America, Blackrock, and Barclays, as part of the government’s plan to boost funds.
“Investors tell us they want to help in delivering a better Britain. Working in partnership with government, social impact investing can change people’s lives and improve communities across the country.
“We are dedicated to creating the right environment for impact investment across the country, and the announcement of over half a billion pounds worth of impact investment building tens of thousands of new homes is a great example of the change that we are delivering on,” said Jones in a statement.
