Funding Affordable Homes 8th Annual Impact Report

The Good Economy (TGE) has worked with Funding Affordable Homes (FAH) since 2015, having at first designed the impact measurement and management (IMM) framework the Fund uses for its impact decision making, and since providing independent verification of FAH’s real world impacts.

Sarah Forster, co-Founder and CEO of The Good Economy, said: “Funding Affordable Homes was one of our very first clients and indeed one of the first affordable housing funds in the UK. From the outset FAH has been committed to transparency and stakeholder accountability, setting an example for the sector.”

Highlights of the 2023 Report

Mapped to the Fund’s stated impact objectives, TGE found good progress against all indicators.

Social Need

FAH’s portfolio provides affordable general needs homes for those struggling to rent or own a home on the open market, specialist housing including extra care for older people, supporting living for people with a range of disabilities and a homelessness project. Overall, 49% of properties are in the 20% most deprived local authorities and occupancy rates across the portfolio are at 95% (up from 92% last year), indicating high demand for FAH’s homes.


Half of FAH’s general needs homes are at the most affordable social rent level, set at around 50% of market rates. This is substantially above the national average, where only 20% of new affordable homes in 2022/23 were for social rent (where tenure is known). Affordability analysis shows that most of FAH’s shared ownership homes provide a route to home ownership for households who would otherwise struggle to purchase in the open market. In addition, evidence from Crisis and the National Housing Federation suggests FAH’s specialist housing schemes are providing value for money for public budgets compared to potential alternatives.

High Quality, Sustainable Developments

FAH has a portfolio of quality schemes which have been built to a high standard. Consideration has been given to the sustainability of the buildings and the extent to which they are socially fit-for-purpose. TGE carried out three site visits in July 2023, and feedback from residents was very positive overall with only a handful of minor issues reported, which is largely to be expected. Most of the Fund’s homes meet National Space Standards (NSS). FAH is also now exploring options to improve operational environmental performance through undertaking BREEAM In-Use assessments of all schemes.


The Gross Development Value of FAH’s current portfolio is £124.8 million. The Fund’s investment has facilitated the delivery of 732 new social and affordable homes across nine schemes. FAH’s current portfolio includes schemes where FAH has partnered with local authorities, developers and RPs to unlock sites and drive forward delivery which may not have occurred otherwise. Since the Fund’s launch, TGE assesses FAH to have generated a high level of additionality to the sector. Whilst no new investments have been made in the last 12 months, the Fund has now raised new capital and is expects to start funding new schemes in the coming year.

Quality of Management

FAH, as the property owner, is not directly involved in the day-to-day management of residents living in its homes. Instead, FAH enters into management leases with partner Registered Providers. To ensure FAH’s expected standards of management are met, the Fund selects high-quality partners to deliver services to residents. This year, TGE heard particularly positive feedback at two of the Fund’s schemes regarding the standard of management provided.

Adrian D’Enrico (Fund Manager, FAH) said: “We are delighted to have worked with The Good Economy once again to produce our eighth annual social impact report for Funding Affordable Homes. The report offers a rigorous assessment and insight into the additional homes we have created, helping give investors a holistic view of the challenges and successes of delivering social impact through the delivery of much-needed affordable housing across the UK.”

Full Report and Case Studies

View the full report including various case studies here