Investing in social housing could add more than £50bn to the UK economy, according to new research undertaken by Cebr on behalf of Shelter and the National Housing Federation (NHF).
The research found building 90,000 social homes a year could add £51.2bn to the economy net over 30 years and would directly support nearly 140,000 jobs in the first year alone.
Within three years, the wider economic benefits of building the homes would break even and return £37.8bn back to the economy, largely by boosting the construction industry.
The new social homes would also generate savings of £4.5bn on housing benefit, £5.2bn savings to the NHS, £4.5bn savings from reduction in homelessness, £3.3bn savings to Universal Credit, plus £2.5bn income from construction taxes and £3.8bn income from employment taxes.
Last year alone, there was a net loss of nearly 11,700 social homes and ahead of the general election, Shelter and the NHF are calling for political parties to commit to end the UK’s housing crisis.
Polly Neate, chief executive of Shelter, said: “Homelessness is a political choice, with a simple solution. Building 90,000 social homes a year will not only end the housing emergency, but due to the wider economic benefits it brings, it will pay for itself within just three years. Day after day our frontline services are inundated with calls from people who are being tipped into homelessness because there are no genuinely affordable homes available and private renting is just too expensive. Communities are being torn apart as people are priced out of their local areas – leaving behind their jobs, children’s schools and support networks.
“It doesn’t have to be this way. A safe and secure social home will give people a place to thrive – improving their health and access to work and education. All political parties must make the choice to end the housing emergency – they must fully commit to building 90,000 new genuinely affordable social rent homes a year for ten years.”
Kate Henderson, chief executive of the National Housing Federation, added: “This research shows not only that the housing crisis can be solved, but that this can be done in a way that will save the taxpayer money, boost jobs and bring huge benefits to the wider economy. Right now, we are in the midst of a housing emergency. Millions of children are being pushed into homelessness, families are being forced into impossible choices to keep a roof over their heads and people in every community in the country are seeing life chances harmed by inadequate housing.
“Building more social homes is a win-win solution. It will immediately boost the construction industry, supporting thousands of jobs, and will save the government and taxpayer money over the longer term. It also brings huge benefits to people affected by the housing crisis through reducing homelessness, increasing employment and boosting children’s life chances. We urge all political parties commit to a long-term plan for housing with funding to build plan for a generation of new social homes.”
