That housing associations (HAs) do more than just house people should not come as much of a shock – the support services required as part of modern housing provision are ever expanding and ever more variable.
What may shock many, however, is the outcome of some new research: it turns out HAs are often one of the most crucial cogs driving the giant wheels of a local economy.
The research is by Tees Valley Unlimited (TVU), the Local Enterprise Partnership (LEP) for the five local authorities of Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton on Tees.
It looked at the total economic impact of the area’s HAs during 2012/13, including development and construction activity, expenditure on goods and services, maintenance and salaries.
‘Inspiration for the research came from a presentation by Sheffield Hallam University Centre for Regional Economic Research and the Northern Housing Consortium in Leeds early this year,’ explains Linda Edworthy, director of strategy and policy at TVU.
‘They had developed a tool that could indicate the economic impact of social housing providers on the northern region.
It was thought it would be useful to assess the impact of the social sector locally. So the research was carried out in partnership with the main Tees Valley Registered Providers and Darlington BC who have retained stock.’
Research examined total cash input into the economy, direct and indirect employment and contribution to local Gross-Value Added. It discovered some impressive statistics. The headline finding was that HAs contribute £479,801m into the Tees Valley economy, a figure which represents two percent of the region’s entire economic output measured as Gross Value Added. Most would agree that’s a hefty contribution.
Other figures were just as impressive. Locally, the HAs sustained 1,700 direct jobs and supported 2,000 indirect jobs areas.
Additionally, HAs invested £1.98m in 133 projects resulting in nearly 500 people taking up full-time employment, 1,352 people undertaking work-related training and 59 people being placed into formal apprenticeships.
A further 1,902 people benefitted from financial and benefit programmes and 17,000 benefitted from environmental and community projects.
‘The key finding of this research is that the day to day operations of providers can have a significant impact on the local economy and when combined with community investment projects, major benefits related to employment, training and community cohesion can accrue,’ says Edworthy.
‘The result that surprised us most was the direct employment numbers. The results show that the social housing sector is among the largest employers in the Tees Valley.’ Showing the contribution HAs make is all very well, but the interesting question is whether knowledge of that contribution will change the way HAs are viewed by councils, central government and even the general public.
Cllr Bill Dixon, leader of Darlington BC, who is also TVU’s deputy chairman, believes the impact could be significant. ‘The study presents an ideal platform for us to inform a broader audience of how economically influential social housing providers are to Tees Valley,’ he explains.
‘I don’t think necessarily that HAs – or us with our own provision – get the level of recognition from the Government or the public that is proportional to the commitment housing providers make to the broader economy.’
Dixon says HAs commonly face a government and a public that want HAs to focus on ‘core activities’ and to shrink rather than maintain or grow levels of service. As a result, he says valuable additional services are vulnerable to being reduced or stopped in favour of ‘traditional’ services.
Armed with this research though, HAs suddenly have a very powerful argument for not just stopping efforts to reduce HA services but for those decisions to be reversed completely to the point where HA services are in fact being expanded.
‘Research has highlighted perhaps little underappreciated facts about the sector,’ says Edworthy.
‘The sector has been quietly going about its business for many years not only providing affordable accommodation to meet housing needs but also significantly contributing towards the local economy directly and indirectly.
‘It is hoped this research will bring wider awareness of the broader economic benefits of their operations and recognition they are as much a part of the local economy as other business concerns and that money invested in social housing can have significant benefits for the wider economy.’
At a time of difficult – though admittedly recovering – economic circumstances, any extra money is going to be tough to prise from budgets. Dixon admits this would be the case, but is confident that the multiple benefits the research uncovered are very persuasive.
‘I think this is all about robust and evidenced linkage between every pound that is spent and what this can multiply into in terms of economic growth,’ he says.
‘If we are able to demonstrate investment in a particular service will have “spin off” economic benefits or assist in “deferring” costs elsewhere in our businesses, then clearly the investment decision will be justified if it provides sustainable economic growth or recovery.
‘Equally if such interventions help in removing other social or economic “barriers” to individual communities, neighbourhoods, businesses, or households, then again such an investment decision would warrant strategic importance.’
Dixon says this will not just be a change HAs will see: ‘The LEP research could be the catalyst for more fruitful partnerships to be established between “non-traditional” partners allowing for more innovative and creative solutions to deliver economic growth.’
If Dixon is right, the impact of the research could be substantial – and rightly so. Its insistence that HAs should be perceived not for what they seem to be, but what they do and the impact those actions have, is an important message to heed for how all LA business is viewed.
In an age of austerity that will not abate for some time yet, the only fair way to assess services is not within a silo of discipline or sector but on the reality of real-world impact.
The latter is not easy, granted, but the TVU research has shown it’s possible.
