An additional
three million social homes are needed to solve the housing crisis,
according to a landmark report which calls on the government to extend the
criteria for who is eligible for social housing.
A major review by
housing charity Shelter,
commissioned in the wake of the Grenfell Tower
disaster, urges ministers to invest £214bn in a 20-year housebuilding
programme that will “reverse the decay” of social mobility in Britain.
The proposals,
produced by 16 independent commissioners from across the political
spectrum, would offer social homes to millions who fail to qualify under the
current system, including young families and elderly people who are “trapped”
in rented housing.
Specifically, the
report calls for 1.27 million homes for those in greatest housing need,
1.17 million homes for younger families who cannot afford to buy and
690,000 homes for older private renters struggling with high housing costs
beyond retirement.
Kate Henderson,
Chief Executive at the National Housing Federation, said: “This is a landmark
report from Shelter, and we are encouraged by the overwhelming public support
for social housing they have uncovered. The report adds to the growing
consensus that social housing needs a long-term programme of investment.
“The commission is
right to recognise that social housing is a crucial national asset, and we need
to properly invest in it. As the report points out, this is a wise investment
that will more than pay for itself in the long-term.
“We also need to
fundamentally reform the way land is bought and sold, making it cheaper for
organisations that want to build social housing. Only then can we build enough
houses so that everyone can have the home they need at a price they can afford.
“The report also
calls for a rebalancing of the relationship between housing associations and
their tenants. We support this ambition and have been working with our members
and tenants to ensure that housing associations are among the most trusted,
accountable and responsive organisations in the country. We also support the
creation of a national voice for tenants.
“Now, we’re looking
forward to working with Shelter and others to continue to make the case for
much-needed social housing.”
The review suggests
the economic benefits of social housebuilding would ultimately outweigh the
initial costs, stating it would require an average yearly investment of £10.7bn
during construction, but that up to two-thirds of this could be recouped through
housing benefit savings and increased tax revenue.
On this basis, the
true net additional cost to the government, if the benefits were fully
realised, would be just £3.8bn on average per year over the 20-year period –
and after 39 years the investment would have fully paid for itself, says the
report.
