Building 90,000 social homes a year will end the housing emergency and pay for itself within three years due to the wider economic benefits, according to a study by Shelter and the National Housing Federation, which represents housing associations.
Their report, The Economic Impact of Building Social Housing, claims the £11.8 billion strategy would be a 'win-win' solution that will immediately boost the construction industry, supporting thousands of jobs, and will save the government and taxpayer money.
Based on their report, it would also take 90,000 tenants out of the PRS, addressing the issue of under-supply.
It explains that building 90,000 social homes would directly support nearly 140,000 jobs in the first year alone. Within three years, the wider economic benefits would break even and return £37.8 billion back to the economy and would also generate huge savings for the taxpayer across multiple departments including £4.5 billion savings on housing benefit and £5.2 billion savings to the NHS.
The report adds that social homes are more stable than private renting because tenancies are secure, while the socioeconomic benefits of building 90,000 social homes include better education outcomes, increasing rates of employment and reduced crime.
Last year there was a net loss of nearly 11,700 social homes, while 1.3 million households are on social housing waiting lists in England.
Shelter’s chief executive Polly Neate says: “Homelessness is a political choice, with a simple solution. 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.”
Kate Henderson (pictured), chief executive of the National Housing Federation, adds: “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.”
Pic credit: Places for People
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