The real estate sector has undergone a transformation in recent years, with rocketing living costs putting pressure on households and residents seeking better living environments.
In this context, developments are no longer seen as just bricks and mortar, but as an opportunity to deliver long term value to communities - or ‘Social Value’. It’s no surprise, then, that many local authorities are embedding Social Value considerations into planning processes, while developers are focusing on creating a positive impact for residents and tenants.
Here we’ll be sharing some case studies shared by speakers at the Social Value Conference 2024, where real estate and planning were central topics.
The local authority perspective: How Salford’s planning policy maximises Social Value
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 net zero 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
Planning for impact: Developers taking the lead
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 report, but then we also talk and listen.
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.
Unlocking Social Value in planning: Top tips for developers and authorities
Here are a few quick takeaways to help local authorities and developers generate more Social Value from your own activities:
- Nurture partnerships early on in the planning process: Continuous collaboration from early inception will help ensure the needs of the local community are truly met - resulting in benefits for both residents and developers.
- Authorities – Introduce Social Value requirements in the planning process: Create Social Value-related SMART goals, to be monitored with a standardised system throughout the project’s delivery process.
- Developers – Set Social Value targets: Make commitments at the pre-planning stage to engage and align your supply chain around common goals throughout the procurement process.
- Plan for the long-term: 75% of Social Value occurs in use. Look beyond the planning phase to ensure social impact is delivered in the operation of commercial space and across the project’s whole life cycle.
- Balance the qualitative with the quantitative: Rely on a consistent and standardised Social Value measurement method like the TOM System – but also keep an ear to the ground and actively encourage residents’ feedback and inputs.
- Encourage occupiers to amplify Social Value: Consider leveraging tools like social leasing contracts to prompt residents to rely on local supply chains, employ local workers, embrace environmental best practices, and create more Social Value for their communities. For more ideas, you can check out the Better Buildings Partnership Green Lease Toolkit.
Need more insights?
To learn more about Social Value in the built environment, watch this dedicated panel discussion from the 2024 Social Value Conference.
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