There is considerable social value created through the early lifecycle of a real estate development, including environmental benefits, jobs and skill development. These are all important beneficial outcomes.
However, equally as important when describing the social value of a regeneration project are the health and community, or social fabric, benefits that these developments enable.
In September 2023, we welcomed the first residents into New Vic, a £130m build-to-rent development in Manchester. We built New Vic to provide the cashflows we need to pay the pensions of our policyholders over the coming decades.
Embedding social value into a development is important in this regard for two reasons.
First, we are part of the local community and we want to live and work in an environment that benefits from our presence.
Second, it also results in longer duration tenancies without an undue number of vacant apartments, which means smoother cashflows to help pay the pensions of our policyholders.
The best developments provide a welcoming physical environment alongside an engaging on-site team that facilitates an active community.
The starting point for managing a build-to-rent development is the creation of communities. Determining who takes ownership of social value initiatives within these developments is a crucial first consideration.
Outsourcing specialists are well-suited to overseeing the operational aspects of day-to-day management but leadership, direction and commitment from the development owner is essential to drive innovation in community engagement over the long term.
The investment need not be large; what matters is the commitment of effort, creativity, time and care.
For example, we host weekly “get to know your neighbour events” for new residents and have initiatives including health and wellness events, focusing on a healthy body and mind; a dog walking club; fitness classes; as well as partnerships with local businesses and restaurants. Residents can also contribute to the wider community through various initiatives.
For instance, there are ongoing initiatives such as a clothes bank and coffee mornings to support local causes.
It is important to create more of a village – a vertical village perhaps – than a traditional build-to-rent development. New Vic will have a considerable benefit for the centre of Manchester. Having 500 people living on the doorstep of local businesses – our residents are able to buy directly from them through the New Vic app – will support them over future years.
The app also provides a platform for virtual community engagement. As well as booking repairs they may need, booking the on-site amenities, such as the cinema room or private dining room, residents are able to chat with their neighbours, can start groups with those with shared interests and arrange meet-ups. The residents have also formed a bookclub, and soon the New Vic football team will kick off its first match.
The feedback we are receiving from our first residents is proving invaluable as we look to open our pipeline of build-to-rent developments over the next couple of years.
We see the social value in having created such a strong community.
As we welcome increasing numbers of residents into our build-to-rent schemes we will take this experience and help to shape their communities and with it create significant social value by bringing new life back into our town and city centres.
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