Social housing could add £50 billion to the economy

The next government could add £51.2bn to the economy by building 90,000 social rented homes, according to new research released today.

The report was carried out by the Centre for Economics and Business Research (CEBR) on behalf of Shelter and the National Housing Federation (NHF).
 
It is the first to show the massive economic and social benefits of building 90,000 new social rented homes – the figure that needs to be built each year to fix the housing crisis and help end homelessness.

Social rented housing means rents are tied to local incomes, and these properties are around 50 per cent cheaper than private rents.
 
The report found that within three years, the wider economic benefits of building the homes would break even and return an impressive £37.8 billion back to the economy, largely by boosting the construction industry.  
 
Alongside this, Shelter said the new social homes would generate savings for the taxpayer across multiple departments including £4.5 billion savings on housing benefit and £2.5 billion for construction taxes.
 
The savings and additional tax revenue mean the initial government funding required to build the homes (£11.8bn) would be fully paid back in over 10 years.

Shelter said that social homes are more stable than private renting, as tenancies are secure, giving social tenants stronger rights and greater protection from eviction.

As a result, they said, the socioeconomic benefits outlined in this new research report are "significant."
 
Polly Neate, chief executive of Shelter, said: “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.”