The value of a Hyde social tenancy 2020/21
We believe a social tenancy improves people’s life chances and helps them thrive in a number of ways. It contributes to their wellbeing, helping them to realise their potential, enjoy their environment, work meaningfully and contribute to their community.
Since 2018, we have been commissioning independent research to better understand and quantify the social impact we have (our ‘social purpose’) and to help identify the extent to which we contribute to societal change.
We wanted to put a value on the impact social housing could have, not only in creating safe and sustainable communities, but also in reducing the burden on emergency services, healthcare and local authorities. We wanted to demonstrate that social housing saved money and impacted positively on the economy.
The ‘Social’ strand of our ESG framework will build upon our Value of a social tenancy reporting. However, we’ll continue to use this evidenced approach, based on the five pillars of wellbeing (financial, physical, mental, relational and purpose) to measure our impact on customers, communities and society as a whole.
But we’ll also expand our analysis, to measure the impact on staff performance and employee needs, and on our supply chain, which will also help us choose suppliers whose values and objectives align with our own.
The ‘core’ social value of our tenancies (excluding construction and maintenance impact) increased this year:
- £14,781 per social tenancy (2019/20: £13,682)
- £502m across all our social tenancies (2019/20: £471m)
Aside from inflation, this increase is due mainly to the sharp rise in people moving into social housing from temporary accommodation during the coronavirus pandemic. This was most likely the result of the Government’s ‘Everyone In’ campaign to support and find housing for those sleeping rough or in emergency accommodation. Moving people from temporary accommodation to social housing delivers significant savings for local authorities (and increases the value of social tenancies).
Total social value impacted by reduced construction activity in 2020/21
- £648m – Our total annual social value across all our tenancies (2019/20: £723m)
- £19,067 – Total annual value of a Hyde tenancy (2019/20: £21,001)
Our total social value fell in 2020/21, due to the dramatic reduction in construction activity last year, during COVID-19. However, the economic impact of our maintenance activity was similar year-on-year, as we resumed our full repairs and maintenance service during the second and third lockdowns.
- £101m, or £2,956 per tenancy - The economic impact from our construction activity (2019/20: £236m and £5,992)
- £45m, or £1,330 per tenancy = The economic impact of our maintenance activity (2019/20: £51.9m and £1,327)
Saving money for society
The annual direct benefit of all our social tenancies, £502m, is shared between a number of sectors: local authorities; police and justice; education; the National Health Service; the Department for Work and Pensions; the economy; the fire service and banks and creditors. Benefits include:
- £243m – Total economic impact of our customers in work
- £94m – Health-related savings generated by our tenancies
- £59m – Local authority savings by moving people out of temporary accommodation
- £66m – Savings through fewer police call outs and the cost of crime.
The value of a social tenancy is calculated with the support of our advisor, Sonnet Advisory & Impact CIC. We compare life with ‘with social housing’ to life ‘without social housing’. We use data from a variety of reliable sources, including our own tenancy data, to then work out a value for the impact of each of our tenancies.
Read the 2020/21 Value of a Hyde social tenancy report (PDF, 876KB) to understand how we quantify the social impact we are having as an organisation.
The reporting criteria (PDF, 1,376KB) provides a summary of how Sonnet modelled and calculated the values.
The value of Hyde social tenancies to the Treasury (PDF, 238KB) outlines the direct relationship between the number of social tenancies and the return generated to both public finances and to the UK economy.