Europe UK (Commonwealth Union) – A new report, led by researchers at University College London (UCL), suggests that a substantial increase in investments in social and affordable housing could lead to annual savings of around £1.5 billion for the UK government. This would result from the elimination of significant costs associated with homelessness.
This report, released today, coincides with the launch of the Social and Affordable Housing Initiative. This coalition, spearheaded by UCL, in collaboration with internationally renowned architects John McAslan + Partners and the affordable housing charity Dolphin Living, aims to develop effective strategies to address the housing crisis in Britain. The initiative brings together a diverse group of experts from various sectors, including architects, engineers, public health specialists, charities, as well as representatives from the public and private sectors.
According to the report, substantial cost reductions would occur in several areas, including housing, health, social services, homelessness support, and the criminal justice system, as well as in reducing unemployment and the impact on children’s education. These reductions could result in annual savings of approximately £1.5 billion if homelessness were significantly reduced. It’s worth noting that this estimate is conservative, as it does not encompass all related costs within these sectors or account for the broader positive impacts on economic growth, productivity, and life opportunities.
The potential for such significant savings arises because the overall costs associated with homelessness in the UK, including people in temporary accommodation, those in insecure or inadequate housing, as well as rough sleepers, are currently estimated to be around £6.5 billion per year, as indicated in the report.
The report’s savings estimate is based on a proposal to gradually increase government subsidies to approximately £5 billion per year over the next five years, up from the current £1 billion. This would enable the construction of an additional 72,000 social and affordable homes each year, in addition to the 28,000 built annually at present. It was pointed out in the report that, private housebuilders currently construct approximately 150,000 homes each year.
