Lack of access to both housing and financial services creates poverty and inequality. Housing is a fundamental human right, with vulnerable groups such as the elderly often in situations of particular need. Furthermore, access to finance remains a challenge, with the bulk of the world’s population remaining outside the banking system. Government efforts to tackle these issues are creating new investment opportunities.
The Challenge
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The majority of the low-income population in developing countries do not have access to very basic financial services. In the Asia and Pacific region alone, more than 300 million households suffer from lack of access to financial services.1
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In the US, it is estimated that over 40 million people do not have access to financial serivces.2 Two million adults living in 1.3 million households in the UK do not have access to any kind of bank account.3
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In 2008, around 90,000 homeless families are in temporary accommodation in Great Britain, this is double the number in 1997.4
Markets & Drivers
Governments throughout the world are focusing efforts on resolving these problems in innovative ways, through a mix of increased expenditure, regulation and public service outsourcing, which are enabling the creation of public-private partnerships.
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The UK goverment plans to invest £8 billion in affordable housing. At least 70,000 affordable houses a year are due to be built by 2011, including 45,000 social housing; more than double the amount built in 2004.5
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In the UK, 74% of new housing is being built on brownfield land, up from 57% in 1997.6
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Microfinance sector worldwide has a total outstanding loan volume of US$ 25 billion. However, the demand for microcredit is estimated to be US$ 250 billion, ten times the amount lent so far.7
Investment Opportunities
The Social Property & Finance theme focuses on companies whose goods and services promote financial inclusion, property for social benefit, access to housing and regeneration. This includes companies in the following sub-themes:
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Access to housing – facilitating access to affordable or social housing; providing property to organisations delivering socially benefical services
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Access to finance - enabling access to financial services for traditionally excluded sections of society
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Regeneration – regenerating communities and local economies
Examples of companies within the Social Property & Finance theme include...
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Eaga [UK] delivers residential improvements in the environmental, energy efficiency and social justice arenas
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Sirus Real Estate [Germany], a property investment company providing workspaces for small to medium-sized enterprises in Germany
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Bellway [UK] a property developer active in brownfield development in urban areas