Britain's social investment market is on the rise, according to Big Society Capital's first annual report.

The report revealed the financial institution made £56m of investment commitments over the first nine months of operation to 20 different intermediaries.

‘We are seeing a rapid increase in interest in the social investment market,' said Big Society Capital chief executive, Nick O'Donohue.

‘There are a number of drivers of demand for investment, including the need to ensure that social organisations have access to the funding they need to compete effectively with private sector providers for outsourced services; by the Localism Act, which makes it easier for communities to purchase assets and provide local services; and by the mutualisation agenda, particularly for health and social care service providers.

‘This will be supported by the Social Value Act, which requires government bodies and local authorities to consider social value when awarding public contracts,' added Mr O'Donohue.