Labour must build ten times more social homes to meet housing targets

Labour must build ten times more social homes to meet housing targets

0:01 AM, 1st November 2024, About 2 months ago

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The Labour government can only meet its housing targets by building ten times more social homes each year by 2027/28, according to new figures.

Research from the New Economics Foundation (NEF) shows that to meet Labour’s target of 1.5 million homes in the next five years, at least 365,000 new social homes must be built during this parliament.

The NEF argues that the government is downplaying the economic benefits that a large-scale social housebuilding program would provide.

Invest in social housing

NEF analysis suggests that the government must construct at least 90,000 social homes annually by 2027/28. Yet, last year in 2022/23 only 9,500 social homes were completed.

Alex Diner, senior researcher at the New Economics Foundation, says the government must do more to invest in social housing.

He said: “The government’s initial steps to tackle the housing crisis have been encouraging. However, to hit their ambitious housebuilding targets, councils and housing associations must be given the tools and funding they need.

“This should include a top-up to the final year of the government’s grant programme to build the social homes we need. Investing in social homes now would lay the foundations for our country’s economic renewal for decades to come.”

Economic benefits of building social homes

The NEF says the government must understand the economic benefits of building social homes.

According to the organisation, if the government implements a large-scale social housing program, it could generate £225 billion in net social and economic benefits over the next 30 years.

Of that total, £158 billion (43%) would come directly from homes built for social rent.

Mr Diner adds: “The economic benefits of building social homes come from a reduction in government spending on housing benefits, a reduction in the amount spent by local authorities on temporary accommodation as a result of reduced homelessness, increased participation in work enabled by more stable tenancies, and improvements in educational and health outcomes.”


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