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Social value represents the social and economic benefits brought about by responsible property development and management. It focuses on improving the quality of life of a building’s occupiers and local community. It has many tangible outcomes, including creating vibrant communities, jobs and economic growth and improving access to health, education and social care.
Social value can be achieved at all stages of the lifecycle of a building, from design, planning and construction, throughout its occupation and in its long term management and maintenance. Intentional design of a development can help foster wellbeing and protect local heritage and when coupled with effective stewardship, can enhance biodiversity and natural capital.
However, there is a continuing challenge of how to measure social value, which by its nature, covers both financial and non-financial data. Despite progress in this area, much work is still needed to agree a broadly accepted rating and measurement criteria in the market. The National TOMs framework provides a recognised system for evaluating social value according to the principles of the Public Services (Social Value) Act 2012, but it requires more development and adoption in the market.
The difficulty around measuring social value is one of the factors which has led to an increased focus on social impact and impact investing, which is rising steadily with an acceptance that investing in social value can correlate with higher investment returns.
A development will generate social impact by focusing on specific targets within narrow parameters to intentionally create net positive outcomes, which are measured and additional and which positively change the circumstances of the community in which the development is located. Alongside the benefits to the community this can bring, such as improving access, diversity and inclusivity within community spaces, the advantage of this approach is that it can be measured and monitored and can achieve benefits that broader social value activities miss.
Social impact actions are likely to be a key opportunity for developers, investors and occupiers in the future to create relationships with stakeholders and ensure their properties play an important role in the area and community in which they are situated.
The real estate sector has much to contribute to creating social value, and thereby ensuring that real estate is meeting the demands of our times.
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Our buildings and communities are being redefined and repurposed. Working with clients from across the real estate sector gives us a viewpoint on the new trends evolving. On our map we look at the important changes affecting the real estate industry today and in future and offer insight on the challenges and opportunities for our sector across a range of assets and key themes. Please click on the links in the map to discover more.