Report Says UK can add £51.2b to the Economy by Building Social Housing

New research suggests that building 90,000 social homes every year could significantly benefit the UK economy – by up to £51.2bn.

A report by the Centre for Economics and Business Research (CEBR) that was commissioned by Shelter and the National Housing Federation (NHF), argues the investment would not only address the housing crisis but also generate a net profit of £12 billion for the taxpayer over 30 years.

The report, entitled ‘The economic impact of building social housing’ also highlights that building more social housing could create up to 140,000 jobs in the first year alone.

The building programme would also inject £37.8 billion back into the economy within three years, primarily through boosting the construction sector.

Building 90,000 social homes will end the housing emergency

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.”

She added: “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 10 years.”

Potential savings across various government departments

The report also highlights potential savings across various government departments should the UK commit to building new social housing.

The savings would amount to:

• £4.5 billion on housing benefit would be saved
• £2.5 billion earned through construction taxes
• £3.8 billion earned through employment taxes
• £5.2 billion saved on NHS costs
• £4.5 billion saved on homelessness reduction
• £3.3 billion saved on Universal Credit.

These savings, combined with additional tax revenue, would recoup the initial £11.8 billion government investment within 11 years.

‘The housing crisis can be solved’

Kate Henderson, Chief Executive of the National Housing Federation said:

“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.”

She adds: “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.”

Source: Property 118