G15 calls for immediate additional funding to convert unsold units to key worker ‘homes for heroes’

This “initial burst” to convert homes intended to be sold at market prices would likely require “higher levels of investment to match housing association borrowing”.

But a range of options could be used to reduce the burden on the public purse in the longer term, the report said.

It proposes scaling up partnership with the government, the private sector, local councils, health trusts and charities in delivering this, as well as “a national appeal for donations” led by civil society to offer individuals, public and corporate sponsors the chance to contribute.

This would help it to work towards a goal of delivering 100,000 key worker homes over five years, which “shouldn’t come at the expense of the affordable homes that have already been planned”.

One million London ‘heroes’

Applying the new government definition of key workers, there are 1.05 million COVID-19 ‘heroes’ in London – 18 per cent of the working-age population. These include care workers, NHS staff, teachers, refuses collectors and delivery workers.

Many of these will already have a suitable home, and some will already be accommodated by housing associations, the report notes. CEBR analysis in 2016 estimated that social housing is home to a third of London’s police officers and ambulance staff, and a third of workers in care-related jobs.

The G15 report says that the housing required by essential workers across a range of circumstances falls into three brackets.

The first bracket includes social rented homes for those on the lowest wages. The second includes new discounted rent homes that are let “significantly below market rents” to essential workers on middle incomes who would not qualify for social housing but may still find renting “very unaffordable – especially if they have children”.

And the third bracket includes shared ownership or “part-buy, part-low-rent” homes, for those on higher or moderate incomes.

The homes should be well designed with private outdoor space and well connected to employment hubs, the report added.

Public land and long-term planning

A longer-term programme would have lower costs to the public purse, but “even with substantial contributions from housing association borrowing, additional investment, public giving and sales receipts – there would be a need for significant levels of government investment”, the report said.

These costs could be reduced through “innovative uses of land” and modern methods of construction.

The report suggests that if HM Treasury removed the restriction on public bodies to get best market value on land sold, and went further to give guidelines to these bodies to prioritise land for sale to housing associations planning to build Homes for Heroes, “huge untapped capacity” could be unleashed. This in turn could bring benefits to the likes of TfL and NHS trusts because their own staff will benefit from the housing scheme, it said.

Commenting on the publication, Helen Evans, chair of the G15 and chief executive of Network Homes, said: “Essential workers on the frontline of this crisis are often among the lowest-paid in society. Homes for Heroes is about giving these people a safe, secure and genuinely affordable home to live in.

“With the collaboration of government and the housing sector, both private and social, we should bring forward a once-in-a-generation number of new homes for our essential workers, including those not eligible for traditional key worker housing.”

Rosie Toogood, chief executive of Legal & General Modular Homes, added: “The Homes for Heroes campaign unites several great causes: creating quality homes for genuine heroes, powering innovation and skills right at the time we need to create jobs, and pushing the bar upwards when it comes quality and sustainability. We’re delighted to support this initiative.”

Mark Farmer, chief executive of Cast Consultancy and the UK government’s modern methods of construction champion for homebuilding said: “This initiative sits well with the heightened mood of public gratitude towards the nation’s key workers. It also represents perhaps a unique opportunity to create a large-scale and tenure-diverse housing delivery programme, bringing central and regional government, local authorities, housing associations and private enterprise together in a unique way with a common goal.”