For many years, there was a lingering perception among pension funds that social impact investing was something too alternative, too complex, too marginal, and addressed issues that perhaps the state should resolve.

But I’ve seen the landscape change over recent years.

There’s been a marked shift in attitude and a dawning realisation that social impact investment makes financial sense, portfolio sense and very importantly is something pension providers’ members are looking for. Members are interested in their savings making a difference in the communities where they live and work, as well as helping to solve the UK’s most pressing social issues.

At Resonance, we’ve seen this first hand across our social impact property funds. These property funds offer a way to purchase and refurbish stable and affordable homes for people facing housing crisis, enabled by investors who are looking beyond just a risk-adjusted return.

It’s by no means breaking news that the UK is in the grip of a housing crisis, so it’s tempting to hail the government’s recent announcement of 1.5 million homes as a magic bullet – the only solution to the growing epidemic of temporary accommodation, poor quality housing, energy inefficiency and child poverty.

However, we cannot simply build our way out of the lack of affordable housing. The homelessness crisis is not a one-solution problem. We need all the tools in the box and thankfully there are additional alternative answers.

While the government pushes on with its plan to build new homes, there are a million houses standing empty around the country, more than 260,000 of which are classed as ‘long-term empty’,* according to Action on Empty Homes. Putting these homes to good use could solve the temporary accommodation problem overnight.

Of course, we still need new homes, but the housing crisis won’t be solved by new supply alone – especially when we’re facing a homelessness crisis now. Today.

80% of homes we will have in 2050 are already built. Making better use of current stock makes both commercial and environmental sense. Often these empty properties are in the heart of communities, where there are already existing services, employers, infrastructure and transport links, all of which people need to progress their lives. And much of it needs significant upgrading.

This is where institutional investment can be transformational, tackling systemic social issues while offering exactly what investors are looking for: long-term, stable income.

Greater Manchester Pension Fund is a case in point. Its £20 million investment into Resonance’s National Homelessness Property Fund 2 (NHPF2) included £18 million to refurbish 160 homes for 259 people, including 89 children in North-West England, all of whom were previously stuck in temporary accommodation.

With local authorities currently spending £2.2 billion on temporary accommodation (according to homelessness charity Crisis), institutional investing to provide settled accommodation for those who urgently need it is a compelling alternative to state-funded rooms in B&Bs, while providing a long-term, risk-adjusted return.

Upgrading and retrofitting existing vacant, underused or neglected homes delivers one part of the solution to the housing crisis currently affecting hundreds of thousands of families and individuals, without the stumbling block of a five or even a ten-year wait.

It can provide affordable, safe, settled accommodation in months, not years. It offers homes for families living in temporary accommodation as they rebuild their lives and become socially mobile. Some are women fleeing abusive relationships, others are adults with learning disabilities; many are at the hands of a system that has let them down over many years.

1.5 million new homes is an ambitious target and one which requires attention to timescales, infrastructure, environment and housing need. This is no quick fix. Retrofitting and upgrading the energy efficiency of existing housing stock, on the other hand, is cost-effective, better for the environment, makes use of existing infrastructure and benefits society.

And while socially-minded investors are now seeing the potential of investing in settled and affordable homes, we should also consider how we entrust communities to make decisions about the areas where they live.

Community Land Trusts (CLTs), for example, empower residents to identify the affordable housing and amenities lacking in their neighbourhoods and make their own decisions around housing and community assets such as community halls, sports facilities and even green energy supply. It’s a model that makes sense for investors and the community. Everyone wins.

At Resonance, we're proving time and time again that the investing-for-good model works. Pension funds, local authorities and foundations are already investing alongside Resonance to deliver income-generating assets with significant social impact.

As public awareness intensifies alongside policy attention, the need for additional solutions will become ever more acute. Those already investing in practical, immediate solutions to systemic societal issues will be leading the way.

The conversation is shifting. Social investment is not only a moral imperative but a smart investment for the future. Confidence is building in how social investment can deliver on fiduciary duty obligations of institutional investors and with the improving FCA sustainable labelling, there is both opportunity and clarity to engage at some scale.

* ‘Long-term empty’ properties are those liable for council tax and are unfurnished and not lived in for over 6 months.