Much more investment in the construction of social housing could boost the economy by a dramatic £51.2bn, according to a new analysis.
Research by the Centre for Economics and Business Research (CEBR) has looked at the economic and social impacts of building 90,000 social homes in one year.
The study, commissioned by Shelter and the National Housing Federation (NHF), estimated that the construction and management of these homes would deliver £48.2bn.
It would also benefit the exchequer to the tune of £7bn and would bring indirect benefits to wider society of £31.4bn.
CEBR estimates the construction of 90,000 new social homes would cost £35.4bn and could be paid for in part by £11.8bn in grant funding.
A construction drive of this sort could also support the creation of 350,000 new jobs, according to the study.
Kate Henderson, chief executive of the National Housing Federation (NHF) said: 'This research shows not only that the housing crisis can be solved, but that this can be done in a way that will save the taxpayer money, boost jobs and bring huge benefits to the wider economy.'
Andy Hulme, chief executive of the social housing charity, The Hyde Group commented: ‘This report proves investing in the most affordable homes makes economic sense as well as being the right thing to do to help solve an acute housing crisis.’
The shortage of social housing is putting pressure on overstretched local authorities. Birmingham City Council is considering closing their social housing waiting list to new applicants while Leeds City Council is considering removing 18,000 people from their social housing waiting list.
