Inside Housing's Carl Brown reports from the HACT 'Social Impact of Housing Providers' report launch event held on Monday 11 February 2013.
This article was published on Inside Housing's website on Wednesday 13 February 2013.
A pension fund manager has called for a new system to measure social value so financial institutions are more easily able to invest in affordable housing.
Pete Gladwell, Head of Public Sector Partnerships at Legal & General, said the financial crisis has provided an opportunity ‘to re-prioritise the purposes and values of the financial industry’.
Speaking at an event in London on Monday, Mr Gladwell said: ‘The single handed and relentless pursuit of short term financial gain has been widely disparaged.’
Mr Gladwell said L&G’s clients have expressed concerns that L&G looks to ‘assess how they are best able to deploy capital to benefit society’ rather than look solely at financial returns.
He said it should be self-evident that working with housing associations to fund housing is socially beneficial but investors need ‘objective measures’ to assess investments.
Mr Gladwell was speaking on Monday at the launch of a report commissioned by charity Hact called The social impact of housing providers.
Written by economist Daniel Fujiwara, the report outlines ways of putting monetary values on the social benefits of housing.
Matt Leach, chief executive of Hact, said: ‘This is about L&G as a socially-focused institutional investor wanting to know what the social value pay-off is for investing in housing providers.’