Design & Build UK Report: Investment in social housing could boost economic by £50 Billion

One of the pressing issues in the UK is homelessness, and here at Design & Build UK we recognise that the issue is a complex and multifaceted concern that requires comprehensive and coordinated efforts from government, NGOs, charities, and the private sector to address effectively.

Using industry insights, ONS stats and the opinion of industry leaders, we have conducted a report which has unveiled the immense economic potential hidden within the realm of social housing investment and its ability to combat the national epidemic.

Whilst researching this topic it became apparent that the industry does recognise the growing concerns over the alarming surge in homelessness, as leading organisations have reached out to Chancellor Jeremy Hunt, emphasising the urgent need for support services to combat this pressing issue.

Dozens of England's foremost homelessness organisations, services, and partners have penned a heartfelt letter to the Chancellor, urging for immediate action in the upcoming spring Budget. This call to action coincides with a report by the National Housing Federation (NHF), which projects a staggering £50 billion boost to the economy through the construction of 90,000 social homes.

Due to be published this month, the latest statistics on rough sleeping and temporary accommodation are anticipated to reveal yet another sharp increase in homelessness. In their letter, the collective of 37 homelessness organisations highlighted the dire financial strain faced by service providers, attributing it to insufficient funding and budgetary deficits.

A poll conducted by Homeless Link corroborates these concerns, with findings indicating that a significant portion of providers are struggling to sustain their services due to financial pressures. Alarmingly, many are on the brink of closure, posing a grave threat to those in need of vital support.

The social housing report, conducted by the Centre for Economics and Business Research (CEBR) on behalf of NHF and Shelter, sheds light on the transformative potential of investment in social housing. Not only does it promise to create nearly 140,000 jobs in its inaugural year, but it also forecasts substantial returns to the economy, primarily driven by a revitalised construction sector.

According to Shelter's chief executive Polly Neate, addressing homelessness through the construction of social homes is not just a moral imperative but also an economically sound decision. Similarly, NHF chief executive Kate Henderson asserts that investing in social housing represents a win-win solution, benefiting both the economy and society at large.

However, Labour's Matthew Pennycook criticises the government for exacerbating the housing crisis, pledging his party's commitment to prioritising affordable housing initiatives. In response, a government spokesperson reaffirmed their dedication to ending rough sleeping and boosting social housing supply, citing significant investments and ongoing efforts to address homelessness.

In conclusion, the report's findings underscore the pivotal role of social housing investment in alleviating homelessness while simultaneously bolstering the economy. With collaboration between government, advocacy groups, and industry stakeholders, a brighter future for housing in the UK is within reach. Lee-john Ryan, Content Director, Design & Build UK