Sociarealty Valuable

As social value and impact takes its place at the top of the business world agenda coupled with the growing demand by consumers for purpose-led business, it is heartening to see that the importance given to "social value" percolates into the real estate/built environment sector. 

It is essential that social impact and value becomes ingrained and embedded in the sector (whether it be investment or development) so that we are no longer having to debate the need for it. 

The industry should continue to  look holistically at the total impact an asset or a development could have throughout the life cycle, from acquisition through the design and construction process, to the impact of that building/ development on the  end users and surrounding communities. 

The Social Value Act (designed to enable local authorities to consider social impact in the reward of procurement and contracts) is a step in the right direction. However, as John Alker's blog points out, there is still long way to go. This includes having a sector-wide adoption of a transparent and structured framework to measure social value.

However, can we go even further? At the Property Week and LGIM Real Assets Social Impact Spotlight debate (with a number of high profile panellists) held in February this year, it was agreed that the industry needed to adopt a simple, consistent and standardized set of metrics to measure the social value that could be applied across the sector. 

Perhaps, these metrics could be introduced as a voluntary model code  to see if it does make any difference. If there is still not a lot of traction, a change in legislation  may be  needed for example to  expand the scope of the Social Value Act  further to drive social value in the real estate sector ( not so as to hinder or deter investment or development but just to help facilitate the process). 

Ultimately, unlocking social value and applying it to the real estate sector would be a win-win situation for everyone.