Shelter is calling for the construction of 90,000 rental properties each year for a decade - and it claims this would “help end homelessness.”
New research carried out by data firm CEBR on behalf of Shelter and the National Housing Federation says such a programme would add £51.2 billion to the UK economy, including £12 billion profit to the taxpayer.
The properties would be for social renting which Shelter says is the only genuinely affordable housing, as rents are tied to local incomes. “On average, social rents are around 50 per cent cheaper than private rents” claims the charity.
The research suggests that an annual build of 90,000 would directly support nearly 140,000 jobs in the first year alone. Within three years, the wider economic benefits of building the homes would break even and return £37.8 billion to the economy, largely by boosting the construction industry.
It’s also claimed there would be savings on housing benefit, Universal Credit, employment taxes and other spending.
Shelter says that for decades, successive governments have failed to build enough social homes and every year more are lost through Right To Buy sales and demolitions.
Last year alone, there was a net loss of nearly 11,700 social homes, while 1.3m households are on social housing waiting lists in England.
Ahead of the general election, Shelter and the NHF are calling for political parties to commit to the programme.
Shelter chief executive Polly Neate says: “Homelessness is a political choice, with a simple solution. Building 90,000 social homes a year will not only end the housing emergency, but due to the wider economic benefits it brings, it will pay for itself within just three years.
Day after day our frontline services are inundated with calls from people who are being tipped into homelessness because there are no genuinely affordable homes available and private renting is just too expensive.
“Communities are being torn apart as people are priced out of their local areas - leaving behind their jobs, children’s schools and support networks.
“It doesn’t have to be this way. A safe and secure social home will give people a place to thrive – improving their health and access to work and education. All political parties must make the choice to end the housing emergency - they must fully commit to building 90,000 new genuinely affordable social rent homes a year for ten years.”
This article is taken from Letting Agent Today