Delivering real value in tackling social challenges

The Hyde Group, MTVH and The Guinness Partnership say government needs to do more, if more social homes are to be built and their value to the economy and society is to be maximised. 

The housing associations want government to recognise the value housing associations add in providing social homes and support services to residents and communities, and to help address the dramatic rise in the number of families living in temporary accommodation, the issue of in-work poverty and health inequalities caused by substandard private rental housing. 

They want swift confirmation of the reintroduction of rent convergence at £3 per week, to help housing providers invest in improving and maintaining homes. This would help further tackle health inequalities and build on the savings good quality social housing provides to the NHS. Delivery of the full promised funding to support the new Warm Homes Fund, alongside setting simple and predictable requirements for the new Decent Homes Standard, will also further add to the value social housing provides towards health.  

The report finds that social housing is an intervention that reduces poverty, and the organisations are collectively calling for measures to help make work pay, including the removal of the two-child benefit cap.  

To help reduce the reliance on temporary accommodation, and the costs this leads to (both financially to local authorities and in poorer outcomes), the group want to build on the welcome confirmation of government funding for new affordable and social housing by ensuring grant rates support the delivery of the most affordable social rent homes. 

The three housing associations commissioned Jim Clifford OBE, Honorary Professor at Sheffield Hallam University, and his team at Sonnet Advisory & Impact, to provide economic analysis of the benefits of England’s social housing stock, which also drew on data made available by A2Dominion and Platform Housing. 

The new report is an update of well-respected Value of a Social Tenancy (VoST) research originally published in 2018 by Hyde and Sonnet, and which is now used by many leading housing associations annually to calculate the economic contribution and public service cost savings social housing generates each year.  

The five housing associations, which together own or manage 160,633 general needs homes, generated at least £4.8bn of social value, or £29,982 per social tenancy, in 2024/25. 

It’s estimated that, this year, this saves the NHS £691m and saves local authorities £365.5m, by providing safe, secure and well-maintained homes that enable people to move out of temporary accommodation and that reduce the burden on public healthcare. 

Plus, research has shown that people living in social housing are more likely to be employed, reducing Universal Credit Claims, saving the Department for Work and Pensions an estimated £89m a year. 

And it’s estimated England’s 4.3 million social homes deliver at least £87bn every year – up from £77.7bn in 2023/24. This includes: 

• £42.3bn to the economy 

• £18.5bn in savings to the NHS 

• £9.8bn in savings to local authorities 

• £2.4bn in savings to the Department of Work and Pensions. 

“Once again, the VoST research shows that, by building more social housing, we can deliver a great return on investment for government, on top of the contribution existing social homes provide, along with significant social benefits,” said Group Chief Executive Officer of the Hyde Group, Andy Hulme. 

“For example, moving people out of temporary accommodation and into safe, affordable and secure homes not only saves local authorities money but also enables people to settle in a place, to find a job, for their children to go to school, and for them to build local connections and feel part of a community.” 

“This report is a powerful reminder of how much a secure, affordable home matters, and provides the foundation for opportunity. At MTVH, the work led by our Community Impact Team helps residents access training, careers advice and employment support, giving people the chance to move forward with their lives and build a more prosperous future for themselves and their families,” said MTVH Chief Executive Officer Mel Barrett. 

Catriona Simons, Group Chief Executive at The Guinness Partnership, said: “We’re pleased to have demonstrated the huge benefit social housing has, not just for residents, but for society and the economy as well. The research shows the extent to which good quality social housing can significantly improve physical and mental wellbeing. This helps to reduce the burden on public healthcare - saving the NHS an estimated £691m and local authorities £365.5m a year.” 

Sonnet Advisory & Impact Director, Jim Clifford OBE, said: “Looking at tenants’ life stories demonstrates that the value housing associations generate goes far beyond simply building and maintaining affordable homes. This independent research clearly shows the positive economic impact of social housing and how secure tenancies provide stability to help improve tenants’ finances, physical and mental health and their relationships with others, as well as helping give them direction and fulfilment.” 

Andy Hulme added: “We support the government’s commitment to achieving a decade of renewal in social and affordable housing, and to deliver transformational and lasting change in the safety and quality of homes. What’s urgently needed is to build on the financial support announced earlier in the year to deliver more social and affordable homes, but also coordinated, cross-sector investment in social housing and community services.” 

Download a summary of the findings of this year’s Value of a Social Tenancy research (PDF, 5.54MB).

Sonnet Advisory & Impact’s full report can be downloaded here (PDF, 643KB)