# UK social impact investment market reaches record £6.4 billion in pandemic year

- Link: https://fundraising.co.uk/2021/10/14/uk-social-impact-investment-market-reaches-record-6-4-billion-in-pandemic-year/
- Published: 2021-10-14T09:12:00+01:00
- Author: Melanie May

**Social impact investing in the UK has increased almost eight-fold since 2011 according
to figures released by Big Society Capital.**

The data, from [Big Society Capital](https://bigsocietycapital.com/)’s Annual Market
Sizing Report, shows an increase from £833 million in 2011 to £6.4 billion in 2020.
During this time year-on-year growth has been consistent with a particular acceleration
between 2019-2020, the year of the pandemic, which saw a 26% increase in the value
of social impact investments in the UK (against a 21% increase in 2018-2019).

Social property funds account for the largest portion (45%) of the market, seeing
eight-fold growth since 2016. Social lending accounts for 43% of the market, with
a three-fold growth since 2011.

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According to Big Society Capital, some of this growth in the social lending sector
can be attributed to funds launched in response to the Coronavirus pandemic, such
as the Resilience and Recovery Loan Fund, set up by Social Investment Business with
funding from Big Society Capital.

Existing funds also contributed to the growth in social lending, supporting social
enterprises and charities through the crisis by providing additional flexibility
and liquidity. These included the Community Investment Enterprise Facility and the
Growth Fund, created as a partnership between Access, the National Lottery Community
Fund and Big Society Capital.

Big Society Capital has now set the goal of at least doubling the UK social investment
market again by 2025.

Stephen Muers, CEO of Big Society Capital, said: 

> “Social enterprises and charities have been a fundamental lifeline for many of
> the millions who were furloughed, made redundant, or isolated from their regular
> social networks and support. They became frontline services for the nation and
> have played an important role in the recovery.
>  
> “Despite this, the mainstream funding challenges persist for many of these organisations,
> so it comes as highly welcome news to see the burgeoning growth of social impact
> investment from the private sector, alongside increasing investment from both 
> local and national government.
>  
> “But this is only a fraction of what we believe is possible over the next few 
> years. Momentum is building and social impact investment has a huge role to play.
> We aim to at least double the capital going into UK social investment, to between
> £10 billion and £15 billion by 2025.
>  
> “More and more investors are realising that it is possible to deliver both a social
> and financial return and so we are confident the market is on track to meet this
> ambitious target.”

Sarah Gordon, CEO of the Impact Investing Institute, commented: 

> “The social investment market sizing which BSC conducts sets an important baseline
> which demonstrates not just how dynamic this market is, but how relevant it is
> for policy-makers intent on increasing opportunities and addressing regional inequalities
> across the UK. We’re excited to be integrating this work into our own impact investment
> market sizing exercise, which will take a broader look at institutional capital
> dedicated to impact.”

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