Maxmising Social Value in the Real Estate Sector

HomeMaxmising Social Value in the Real Estate Sector

Maximising Social Value in the Real Estate Sector

The real estate sector is essential to society and, like social value, it is all about people, communities, connectivity and inclusion. In 2019 UK Government data showed that the industry directly employs over 2.4 million people and contributes £117bn to the UK economy. That represents 6% of total economic output and generates one million jobs a year. As such, the potential for social value generation is significant and conservatively could create additional value of over £30bn per year.

There are opportunities throughout the lifecycle of a development, from design and planning through to construction and occupation, to create social value and ensure there are long-lasting benefits generated for local people and communities as well as investors and owners. The team at SVP has a wealth of experience supporting organisations to maximise social, economic and environmental value at each stage.

“There is a huge misunderstanding which says that somehow delivering social value involves foregoing a commercial return – that somehow being socially useful or economically useful is a zero-sum game.

This is complete nonsense: the two go hand-in-hand and are mutually reinforcing over any reasonable period of time, and the economically sustainable business is the one that has a relevant, socially useful mission or purpose”

Nigel Wilson, Chief Executive of Legal & General Group, speaking at the National Social Value Conference 2020

Relevant Services

PLANNING

  • Local Needs Analysis
  • Community Consultation
  • Social Value Strategy
  • Social Value Statement for Planning

OTHER SERVICES

  • Corporate Strategy
  • Stakeholder Engagement
  • Social Value Policy
  • Bespoke Measurement

ASSET MANAGEMENT

  • Asset Assessment
  • Fund Assessment
  • Benchmarking
  • UN SDGs Reporting

CONSTRUCTION

  • Social Value Action Plan
  • Procurement and Evaluations
  • Contract Management
  • Reporting

Design and Planning

Social value is becoming an increasingly important aspect of the planning process, with some local authorities making it a formal part of the decision-making criteria such as Islington and Salford Councils.

We work with developers across the UK to produce a Social Value Strategy for their developments that is genuinely responsive to local needs and will help unlock long-term social and local economic value for the area.

The Social Value Strategy is developed following a comprehensive local needs analysis, including community consultation through exhibitions, workshops, surveys and meetings with councillors. We will develop a Social Value Statement that may be submitted as a part of a planning application and will describe the wider  ‘Social Value’ contribution that the development will make to society in a way that is meaningful to planning committees

Construction

Social and local economic value can be maximised when there is a structured and responsive Social Value Action Plan (SVAP) in place. We develop these plans based on local needs and priorities and set targets for the Tier 1 Contractor and their suppliers to work towards. The plan is based on the National Social Value Measurement Framework (National TOMs)  which allows for consistent and comparable benchmarking and target-setting.  SVAPs can be produced pre- and post-planning or even during a live project to inform future delivery.

All delivery can ultimately be tracked and measured on the Portal so that progress reports and dashboards can be viewed and downloaded at any time. Using our new dashboard features on the Portal, you can also report your delivery against the UN’s Sustainable Development Goals.

In-Use: Management and Occupation

Once the construction phase is completed, there are numerous ways that social value can continue to be created, for example, through key decisions made about suppliers, service providers, community engagement or local charity partnerships.

There is an important role to be played by property management companies to facilitate social value interventions and activities where possible, and to unlock the benefits that could be created by the  occupiers, residents and suppliers they are engaging with on a day-to-day basis.

Social Value Portal can support you in identifying where social value may be generated and how to put a plan in place to realise that value. We will produce Asset and Fund Reports that help give ESG investors a better understanding of the social value that their investments are making to the local communities they are in, and to society more widely. The reports always have two elements, focusing first on the social value in financial terms, and then on the contribution to the UN’s Sustainable Development Goals.

Testimonial

“For First Base, embedding an approach to social value from the outset of any project is fundamental.

Developing a Social Value Strategy for our planning applications is the best way to ensure that we can maximise the social, economic and environmental value generated throughout the lifecycle of our developments. It is important to us that any social value delivered is tangible, needs-based and developed in collaboration with communities.

That is why we are committed to adopting the Social Value Portal’s approach on all major developments”

Liam Ronan‑Chlond​, Stakeholder & External Relations, First Base