Social housing residents contribute nearly £28bn a year to London’s economy, says report

Social housing residents in London contribute nearly £28bn a year to the capital’s economy, according to new research published by the G15.

The report, which draws on new analysis from consultancy the Centre for Economics and Business Research (CEBR), shows almost two-thirds (65%) of employed social housing residents work in key worker occupations, including health and social care, education, retail and transport. This compares with around 40% of London’s general workforce.

It said: “These are the workers and families who help sustain the city and its public services.”

The research reveals that social housing residents contribute more than £9 to the economy for every £1 received in housing benefit, proving for the first time the significant economic return generated through investment in social and affordable housing.

The research also showed social homes provided by housing associations and councils create around £20 billion of value each year including through savings for public services, including health, policing and housing benefit.

The report also warned housing affordability and availability in London is a barrier to national economic growth, with nearly three quarters of residents polled (72%) saying they have delayed or avoided a major life decision because of housing costs.

Ian McDermott, chief executive of Peabody and chair of G15, said: “People living in London’s social housing contribute almost £28 billion to the economy every year, while social homes themselves create billions more in value by reducing pressure on our public services.That makes social housing one of the country’s most important economic assets.”

“However, the capital’s housing crisis is a human tragedy and represents a major threat and risk to national growth. The lack of social homes hits all aspects of productivity and the economy, making it harder for employers to recruit, increasing pressure on public services and pushing councils towards financial crisis through spiralling temporary accommodation costs.

Daisy Armstrong, chair of the G15 Residents’ Group and a Southern Housing Board member said: “Too often, residents are defined by stigma rather than by the work we do, the families we raise, the communities we support and the public services we help keep running. People living in social housing are part of London’s workforce, economy and civic life.

“This report should help change that conversation. Social housing gives people stability, but residents also give a huge amount back. If we want stronger communities and a fairer society, resident voices and experiences need to be heard, respected and reflected in decisions about the future of housing.”