Meeting commercial and social goals: institutional investment in the housing association sector*

Analyses of the impacts of the use of private finance by housing associations (HAs) across Europe regularly align with the hybridity in the social housing sector, linking private finance to a range of negative consequences related to the loss of social purposes by HAs. This article examines some of the implications of institutional investment for HAs in Britain to meet their economic and social goals. Using a combination of interviews with HAs and institutional investors and a round table discussion, the study shows how such investment has facilitated HAs as hybrid organisations which adopt a pragmatically ‘fit-for-purpose’ approach that combines social benefit with profitability. For institutional investors, investing in social housing is a profit-oriented business as well as a corporate social activity that creates public relations benefits. Importantly, the study shows how government regulations can affect the form of institutional investment (bond finance rather than equity investment) in social housing and help HAs balance the opportunities and risks in combining business and social orientations.