A Strategic Approach for Businesses

Social Return on Investment in the UK Housing Sector

The application of Social Return on Investment (SROI) in the housing sector provides a broader perspective on the impact of housing developments, beyond traditional financial metrics. It reveals the social, economic and environmental values ​​that are created, helping to inform strategic decisions and improve performance.

A notable example of this is the English Rural Housing Association, a leading provider of affordable rural homes in the UK. They conducted an SROI analysis on their housing developments in rural communities. The analysis revealed several significant social returns from these investments.

For example, the provision of affordable rural homes allowed families to stay in or return to their villages, securing benefits from a good support network of family and friends. Local amenities, such as shops and primary schools, saw increased patronage, contributing to their survival and growth. The local authority also benefited from additional income through council tax.

The SROI analysis estimated that for every £1 invested in the English Rural Housing Association’s activities, there was a significant amount of social value created. This demonstrates the substantial social return that can be achieved through investments in affordable housing in rural communities.

In conclusion, SROI can provide valuable insights into the broader impacts of housing developments. By considering social, economic and environmental factors, it can help organizations to maximize their positive impact on local communities.

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