Londoners in social housing give back £9 for every £1 they get in housing benefit
Key Points
- Londoners who live in social housing are a productive economic force, generating £9 for every £1 they receive in housing benefit.
- New research from G15 shows that people living in London's social housing contribute £27.8 billion in economic output every year.
- Londoners polled by G15 said housing costs were one of the biggest factors affecting their lives and relationships.
- Private renters are the worst affected by housing costs in the capital, and are more likely to feel less secure or delay major life decisions due to housing insecurity.
Londoners who live in social housing contribute billions to the city’s economy, generating £9 for every £1 they receive in housing benefit.
This is according to a new report from housing organisation G15, which examined data from the Centre for Economics and Business Research (CEBR) and polling of Londoners to determine the economic impact and value of social housing in London.
It found that people living in London’s social housing contribute £27.8 billion in economic output every year, making social housing a significant driver of growth.
The report found that of those living in social housing who are working, 65% are employed in key worker occupations, and more than one fifth of employed people living in social housing work in health and social work.
G15 said the social housing workforce supports hospitals, schools, transport, care services, retail, construction and local businesses, keeping essential services running every day.
It also pointed to the fact that social housing residents contribute £9 to the economy for every £1 received in housing benefit, stating that this proved the economic return generated through investing in social and affordable housing.
“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,” said G15 chair and Peabody chief executive Ian McDemott.
“That makes social housing one of the country’s most important economic assets. It supports the nurses, teachers, carers, transport workers, shop workers and countless others who keep our economy moving, while giving families the stability they need to thrive.”
Living in the shadow of sky-high house prices
The report also highlighted the impact of housing affordability on household stability, upward mobility, and economic growth.
Polling done by G15 found that housing is one of the defining factors shaping opportunity for residents and workers in London, with more than 86% saying housing costs have influenced their current living situation.
72% of Londoners surveyed have delayed or avoided major life decisions because of housing costs, which includes decisions such as moving out or living independently.
Many report staying in relationships they would have preferred to leave to save on housing costs, and almost one in five people said they had delayed having children because of the cost of housing in London.
Private renters are the most affected by the cost of housing, highlighting the benefits of social housing for providing stability and affordable access to local employment.
“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,” McDermott said.
“As government rightly focuses on growth and delivering more homes, this research proves that investing in councils and housing associations to deliver more social housing is a necessary investment in economic prosperity, stronger public services and the country’s future.”
