Investing much more in social and affordable housing could save the Government an estimated £1.5bn a year, researchers at University College London estimate.
Homelessness, including people who are in temporary accommodation and rough sleepers, costs the UK an estimated £6.5bn a year in housing, health, and social costs, according to the UCL study.
The researchers argue that increasing investment in social and affordable housing would lead to a reduction in these costs, as well as greater economic growth and increased tax revenue, adding up to £1.5bn a year.
The study proposes that the Government increase the housing subsidy from £1bn to £5bn a year over the next five years to enable the building of 72,000 social and affordable homes annually – an increase of 44,000 on the current annual figure.
It also recommends scrapping the right-to-buy scheme for all future social housing.
Co-author Professor Rosalind Raine, UCL Applied Health Research, said: ‘The housing crisis impacts on individuals, families and communities directly and indirectly. It is possible to tackle the holy grail of improving everyone’s lives, with benefits accruing the fastest for the most vulnerable.
‘Our report does not rely on polemic but on published data. This summarises the evidence on the health and wider social impacts, the economic costs and savings, and highlights exemplars of social and affordable housing which can feasibly be scaled nationally.’
