Three private funds have pledged to invest £550m to build a mixture of private and affordable housing in the UK.

The Treasury says the commitments from Schroders, Man Group and Resonance were part of a roundtable discussion with chief secretary to the Treasury Darren Jones this morning.

The department says the package of schemes will build “at least” 5,000 new homes to address social inequality, and will look to raise over £1.2bn “in coming years”.

It adds: “Today’s £550m impact investment underpins the government’s drive to foster public-private partnerships to drive meaningful impact across the country.”

UK firm Schroders confirmed that it will receive £50m from Homes England for its real estate impact fund.

This fund has an initial target of raising £200m and aims to build 5,000 homes “to address social inequality and deliver an appropriate financial return to investors”. It plans to make its first investments by the end of the year.

Investment management firm Man Group has announced a £100mn investment “to deliver affordable and environmentally sustainable housing for communities across England, with 90% of homes to be designated as affordable housing”.

While property fund manager Resonance says it expects to more than triple an existing investment from £79m to £250m “to help create pathways out of temporary accommodation for individuals and families”.

The firm has set a target of hitting £1bn of investment in this area in the next five years.

The Treasury’s Jones says: “We are dedicated to creating the right environment for impact investment across the country, and the announcement of over half a billion pounds worth of impact investment building tens of thousands of new homes is a great example of the change that we are delivering on.”