Evolving Market Infrastructures: The Case of Assetization in UK Social Housing

Abstract

Researchers in economic geography have recently turned to examine the rental sector, particularly how institutional investors have begun to reshape the provision of housing. Following the politics of financialization, the built environment and social relations surrounding residential accommodation have been reconfigured to maximize opportunities for capital accumulation. While scholars have further developed their interest in rental markets, by directing their attention to the financialization of social housing, this burgeoning area remains comparatively understudied, particularly concerning the metrics that are crucial in facilitating assetization. In our article, we seek to provide new insight into the financialization of UK housing associations, to advance understanding of how metrics extend the reach of the financialization into the sector, but how these metrics have also been used to both tactically marginalize and reveal social value for different types of financial actors. First, drawing upon research that has studied the creation of assemblages that are critical to assetization, we seek to explore how different financial stakeholders develop new, competing metrics and frameworks that best meet their own needs. Second, we uncover how new metrics are central in reasserting the role of nonfinancial politics in financialization, through the reprioritization of social value in housing association bonds.

Key words:

• financialization
• housing associations
• assetization
• social investment
• environmental, social and governance (ESG)

Acknowledgments

The authors wish to extend their thanks and appreciation to the research participants who generously gave their time to answer interview questions, and to the reviewers whose comments helped to improve the earlier manuscript.

Notes

1 ESG criteria have seen investors focus on values beyond economic returns. Social value is central to our article, and while we recognize that HAs will be taking actions to enhance their governance and mitigate environmental impact, we have focused on social value in our article due to limitations of space, but to also prioritize an examination of how HAs’ historic social value has disappeared and reappeared over time, through changes in investor interests and the creation of new tools under financialization.

2 GRESB provides ESG performance data and benchmarks. https://www.gresb.com/nl-en/.

3 https://sustainabilityforhousing.org.uk/.