G15: failure to address housing crisis is ‘starving’ UK of £7.7bn in social value

The research found that, per year, London’s social rents provided a total of £2.3bn in higher employment and productivity, £1.3bn in NHS savings and improved well-being, and £649.3m in police and crime reduction.

In addition, the findings showed that £555m in value was added to local authorities per year, including temporary accommodation, social care and child protection, and £179.6m in education.

The G15 found that social tenancies in Tower Hamlets delivered the most value every year, at £599.9m. This was followed by Lambeth at £436.8m and Lewisham at £433.1m.

“We’re a nation obsessed by house prices, but few people and even fewer politicians appreciate the real value created by London’s social homes,” said Fiona Fletcher-Smith, chair of the G15 and chief executive of L&Q. 

“Political parties would do well to remember, as they write their manifestos, that London is built on a vibrant mix of people from all walks of life.

“Providing homes for those that need them most is an asset, not a cost, creating all kinds of social and economic benefits.”

Ms Fletcher-Smith said that “time has run out for the current government to get its own house in order” when it comes to social housing.

She said that whoever forms the next government could “immediately” begin to address the housing crisis by “applying consistency to areas like the rent settlement”.

“This simple act would give housing associations the financial certainty we need to keep borrowing and investing in Londoners and the UK,” Ms Fletcher-Smith said.

“Despite the valuable contributions that social homes make, successive Conservative governments’ indecision means there is little room to grow for housing associations, their residents and London.

“Housing associations provide almost half of London’s existing affordable homes and are the engine of potential new homes. 

“A few tweaks by the next government, at no cost to them, will help us get on with the job of maintaining existing and building new homes, all while helping revitalise and regenerate communities, address stigma and provide a springboard for people into education and employment.”

In February, ahead of the Spring Budget, the G15 called for a return to rent convergence to provide the long-term certainty needed to enable investment in the sector.