This investment is part of the government’s plans to deliver 1.5 million homes over the current parliament, which has also included a reform of planning frameworks and direct involvement from cabinet ministers to push through stalled applications.

SCREIF has a residential-led approach and is predominantly focused on delivering more social and affordable accommodation. This includes the regeneration of town centres.

According to a Schroders spokesperson, the fund has an initial target of raising £200m with the aim of ultimately delivering 5,000 homes. The fund expects to make its first investments before the end of 2024.

Last month, the fund became only the second real estate fund in the UK to be approved by the FCA to use a ‘sustainability impact’ label.

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Matthew Pennycook, housing and planning minister, said this investment was an example of the public-private partnerships the government will use when delivering new homes.

“The contribution we are making today alongside Schroders will see investment directed toward building thousands of new homes and providing the social infrastructure, amenities, and services necessary to create thriving communities,” said Matthew.

Chris Santer, impact fund manager at Schroders who works on SCREIF, said the Homes England investment would help attract further allocations from institutional investors.

“This investment by Homes England is a clear indication of the absolutely vital role this fund is looking to play in the UK by delivering real and tangible change,” said Chris.

“Our homes, and the built environment around us, impact our daily lives. We believe this allocation from the public sector will be catalytic in unlocking further institutional investments, boosting broader confidence and interest in this key sector meaning the fund can enable more communities to thrive across the UK.”