Why What’s Good for Society Is Usually Good for Investors
Recent headlines about changes to ground rents have reminded us of something important. Investments do not exist in isolation. They affect real people, real homes and real communities, and when those impacts are ignored for too long, change is inevitable.
Eighteen months after new leasehold reforms became law, parts of the property investment world are now facing difficult adjustments. This was not caused by a sudden economic crash, but by growing public concern about fairness. For many leaseholders, ground rents felt confusing, unbalanced and, at times, unjust. Over time, that feeling built pressure for reform.
Rather than focusing on who was right or wrong, there is a broader lesson here that matters for businesses and families across Yorkshire. What benefits society often benefits investors too, especially in the long run.
This is not about saying that investments should be charitable. People invest to earn a return, and that is perfectly reasonable. But investments also rely on trust. They sit within laws, politics and social expectations. When a system feels unfair to a large number of people, it becomes harder to sustain, even if it is technically legal.
For years, many homeowners paid ground rent without seeing a clear benefit in return. Some saw their home values affected by contract terms they did not fully understand or could not change. These experiences were shared widely, discussed openly and eventually acted upon. The warning signs were there.
In Yorkshire, many Asian owned businesses understand this instinctively. Success here is often built on reputation, long-term thinking and doing right by customers and communities. Businesses that last are usually those that create genuine value, not those that rely on complexity or imbalance.
This is where the Innovative Finance ISA, known as the IFISA, fits in. The IFISA allows everyday savers to invest in growing British businesses in a tax efficient way. Instead of money sitting idle, it can be used to support small and medium sized enterprises that create jobs, develop ideas and strengthen local economies.
From a social point of view, this gives more people access to investment opportunities that were once limited to banks or large institutions. From a practical point of view, it encourages saving and helps people understand where their money is going and how it is being used.
Most importantly, the end result is positive. Homes are built, businesses grow and communities’ benefit. When investments support real economic activity and everyday livelihoods, they are less likely to face backlash or reversal in the future.
In the end, fairness and common sense are not obstacles to success. They are often the foundations of it.