In this piece you'll learn:
The planning process plays a pivotal role in shaping the impact real estate developments have on their communities – from job creation and economic growth to environmental sustainability and social connection.
That's why real estate, and specifically planning, is increasingly recognised as a powerful driver of Social Value.
There are also growing incentives – and some disincentives – influencing this shift. Investors are prioritising projects with strong societal impact: a recent Morgan Stanley survey found that over half of investors plan to allocate more of their portfolios to sustainable investments in the next year. Meanwhile, the legislative landscape – from CSRD to the Procurement Act – is sending a clear message: businesses must deliver positive outcomes for society.
In short, the long-term impact on people and communities is now a central consideration for planners.
Here we'll explore real-life examples shared at the Social Value Conference 2024 and provide links to practical resources to help guide your own Social Value journey.
Salford City Council (SCC) offers a great example of how a local authority with ambitious sustainability and Social Value targets can use real estate planning for good.
With a goal of creating 40,000 new homes and 40,000 new jobs by 2040, SCC is playing a key role in Greater Manchester’s plans to improve quality of life. However, Nina Howells, Commercial Property Manager at SCC, stressed that inequalities such as food poverty and disparities in education and health services are still plaguing the region.
She also highlighted that the planning and home-building process have a critical role to play in tackling local needs related to inequality, and improving quality of life in the city:
We want to promote purposeful spending in the area, employment and training opportunities, community resilience, health and wellbeing activities, and minimise our impact on the environment in line with our zero carbon strategy.
Nina Howells, Commercial Programme Manager, Salford City Council
There are many ways that local authorities like SCC can reduce inequality and provide more opportunities to local people. These include engaging smaller businesses in the supply chain, working with the impact sector, and creating spaces which strengthen community ties.
She Nina also emphasised the importance of thinking beyond the pre-planning stage and considering the best ways for properties to unlock Social Value across their entire lifecycles:
We know 75% of Social Value occurs in use, so we would really encourage a social impact ethos throughout the operation of commercial space and to employ locally, have local supply chains.
Nina Howells, Commercial Programme Manager, Salford City Council
To this end, SCC has already embedded a clear Social Value policy into its planning requirements and processes, with the support of Social Value Portal. These policies ask developers to consider how their work can strategically create opportunities to support vulnerable households:
We opened our gateway centres for family activities in the winter, with our fantastic customer service team providing snacks and warm places to be in the middle of the cost of living crisis. We also have a concessionary rents policy for our own buildings and shops, where organisations can demonstrate Social Value in line with our corporate priorities to get reduced or waived rents.
Nina Howells, Commercial Programme Manager, Salford City Council
Given their impact on and engagement with communities, developers are uniquely positioned to innovatively address modern challenges.
For example, virtual spaces can be used for community support. In Salford, many digital advertising spaces are now used to run public health campaigns. Digital inclusion is big on the agenda, too, with the city hosting several events to provide digital devices to those who might need them.
💡 Explore Salford’s innovative planning policy
While local councils are broadening their Social Value agenda, property developers are stepping up, too.
Stuart Rogers, Director of Project Management at Muse pointed out the need to gather reliable data, but balance it with a qualitative understanding of real people’s experiences. Using the Social Value TOM System™ , Muse is currently scoring the impact of its projects against five key metrics:
Tracking this data is an essential first step in transparently identifying opportunities for further impact. It also helps developers bring light to success stories that can be replicated across other schemes.
Stuart pointed out the need to combine data with residents’ stories for a holistic understanding of how developments truly impact communities.
We measure and we report, but then we also talk and listen to communities. What what do they want? What do they need? How can we genuinely help and impact a community that we're working in?
Stuart Rogers, Director of Project Management at Muse
Muse's Greenhaus development in Salford exemplifies this commitment, providing 96 affordable apartments where energy consumption is reduced by 90% compared to traditional housing stock – slashing bills and carbon emissions for residents.
Here are a few quick takeaways to help local authorities and developers generate more Social Value from your own activities:
💡 For more ideas, check out the Better Buildings Partnership Green Lease Toolkit.
To learn more about Social Value in the built environment, watch this dedicated panel discussion from the 2024 Social Value Conference.