The power of affordable and good quality housing in a cost-of-living crisis

With the cost-of-living crisis continuing to bite households across the UK, these financial pressures will undoubtedly put a strain on the wellbeing of many. In fact, mental health charity, Mind, published a survey revealing that close to eight in 10 people felt their mental health had been impacted by the current crisis.

In this time of need, housing associations, despite facing funding shortages themselves, are coming together to ease these pressures. With limited resources, they are collaborating with local organisations to create stronger communities for some of society’s most vulnerable people.

Beyond new homes

The homes provided by housing associations can offer a financial safe haven and protect residents’ mental wellbeing from the stresses of navigating the rental market. However, due to the growing cost of borrowing, increasing costs of every supply chain and the government’s 7% social rent cap, many associations are unable to maintain their development programmes, meaning fewer affordable homes will be available for those who need them.

Small housing providers like Soho are focusing more and more on how to work with partners, including their local authorities, to provide further vital services. Initiatives to financially support residents, such as Soho Housing Association’s Community Chest Fund, give residents a boost when times get tough, while our funding for local West End charities provides additional much-needed support.

These initiatives are critical for supporting the mental health of residents and ensuring that associations are doing all that they can to financially help their communities.

Breakdown of community

The provision of affordable housing is not only a financial support for households, but a provision of community. In Soho, we’ve witnessed many people who have connected in our buildings through their love of living in such a buzzy and diverse city. With new data from Rightmove finding that landlords in central London are asking for more than £3,000 per month in rent, many households are sadly being forced to move away from home to secure affordable housing.

Additionally, a survey by Mind revealed that due to the cost-of-living crisis, 16% of people cannot afford to digitally connect with their loved ones and a further 18% can no longer afford to travel to access the support networks they typically rely upon. Arguably, this is contributing to the breakdown of community and family support networks across the country.

This is why the co-operative model that housing associations are often built on remains a lifeline for many. It creates a community and sense of togetherness for residents that is seemingly being eroded by rising costs and is a model that helps to safeguard people’s mental wellbeing through connection.

Joint action 

While housing associations are battling with limited funding, communities need to work together to support those in need. Westminster Council has been forward-thinking in its approach, asking housing associations to submit ideas on how to tackle the issues at hand, and this proactive approach is being mirrored by businesses and councils across London.

But if we truly want to tackle the UK’s current housing crisis, greater support from the government is needed. The average subsidy currently required to build a two-bedroom flat and let it as a social rent in London is £350,000, excluding the cost of land. If grants are not increased, that’s an awful lot of homes that need to be sold to develop a single two-bedroom affordable home on existing council or housing association land.

Housing associations are doing all that they can to provide secure housing during the cost-of-living crisis. However, we can only do so much. To support the mental wellbeing of our country further, the government needs to also do more to support housing associations.