Impact Report 2023 | Schroder BSC Social Impact Trust
Schroder BSC Social Impact Trust plc | Impact Report 2023
IMPACT THEMES
CASE STUDY: Real Lettings Property Fund
Reducing Poverty and Inequality
More than a quarter of a million people, half of them children, are homeless and living in temporary accommodation. Local authorities have a statutory obligation to provide this accommodation, but the standards can vary significantly. One in six homeless households are placed in emergency B&Bs and hostels which can both be high cost and lead to poor outcomes. The Real Lettings Property Fund was developed by Resonance and homelessness charity, St Mungo’s to provide homes and personalised support for people in temporary accommodation or at risk of homelessness, helping them become more independent.
In 2023, the fund entered into 15-year leases with the experienced housing association Notting Hill Genesis for over 50% of its property portfolio. Another smaller and innovative partner Capital Letters are also taking on leases from 2023. St. Mungo’s continues to manage the remainder of the portfolio, with the intention to transfer the remainder over the course of this year. The transition has been well-managed over the course of 2022 and was driven by St. Mungo’s organizational focus shifting toward high needs homeless individuals requiring alternate models of investment and support.
266,000 +7% yoy 7 disadvantaged people provided with essential services 6
SBSI attributed share 22,000
SBSI NAV aligned to theme
Lower-income people in the UK face multiple barriers to accessing essential products and services, including housing, energy, food and finance, and often have to pay more than higher income households. This ‘poverty premium’ costs the UK more than £2.8 billion a year 8 . Inflation has placed further pressure on lower income households. SBSI’s investments provide essential services and housing that are tailored to disadvantaged and underserved groups, directly contributing to the UK’s goals to reduce poverty and inequality.
595 people at risk of homelessness housed
Positive impact on support networks and relationships
£75m Fund (SBSI £6.6m)
Real Lettings Property Fund
Financial drivers and risk mitigation
Impact return and risk mitigation
Yields to investors are generated from rent from Real Lettings properties, a large proportion of which comes from government backed Local Housing Allowance
What: Transitional accommodation and tailored support
Wh o : People at risk of homelessness
H o w mu c h: 259 homes
Sweet Sp o t
Support services for tenants help minimise rental arrears
C o ntributi o n: By taking a holistic approach to homelessness, the fund aims to achieve long-term changes in people’s lives Risk: Delivery risk of working with vulnerable tenants, mitigated by 60+ year track record of working on homelessness
UK SDG national targets SDG 1 No Poverty Target 1.4: Secure housing tenure for all by 2030
Current UK level: 13% of the national population do not have secure tenure, predominantly people from lower income and disadvantaged backgrounds An estimated 271,000 people were homeless in England at the start of 2023, including 123,000 children 9 , while the number of people living in temporary accommodation has grown by 74% in the last decade Current UK level: 15% of housing below decent homes standard, with lower income people most at risk, reduced from 18% in prior year 10 (sdgdata.gov.uk) Unsafe housing costs the UK an estimated £760m annually 11
All investments made on basis of upgrading existing properties to EPC band C by 2025, or band B for new developments
SBSI portfolio contribution: High Impact Housing
User Voice
Provision of affordable, decent homes for 26,698 disadvantaged, vulnerable and lower income people at risk of insecure tenure and/or sub-standard housing (increased from 19,000 in prior year) Growth driven by new developments and acquisitions by funds in the year
Resonance has embedded user voice in its homelessness funds by working closely with St Mungo’s and regularly surveying tenants. As a result of engagement with St. Mungo’s, Housing Partners across its fund and tenants, Resonance developed a Resource Hub
to enable support Housing Partners to share best practice advice, support and helpful tips on how they can support tenants. They have also launched a tenants forum, which plans to meet on a frequent basis.
SDG 11 Sustainable Communities Target 11.1: Safe, affordable housing and
basic services for all by 2030
Paul’s story of Homelessness
6 Cumulative figure since SBSI launch 7 YoY change compares results in year for 2022 (159,000) with in year results for 2021 (148,466) 8 https://fairbydesign.com/wp-content/uploads/2022/11/NOV_22_Local-poverty-premium-summary- report_v02.pdf 9 https://england.shelter.org.uk/media/press_release/at_least_271000_people_are_homeless_in_ england_today#:~:text=Posted%2011%20Jan%202023&text=New%20research%20from%20Shelter%20 shows,England%20are%20without%20a%20home 10 https://sdgdata.gov.uk/ 11 Building Research Establishment, 87741 Cost of Poor Housing Briefing Paper.indd (bre.co.uk)
See Resonance’s full impact report here .
Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy.
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