Social housing in London is a significant economic driver, contributing £27.8bn to the city's economy in 2024, according to research commissioned by the G15 group of housing associations. This figure accounts for housing benefit and underscores the value of stable, affordable housing.
Economic Impact of Social Housing
The G15, which provides social and affordable homes for about one in 10 Londoners, compared the lives of those in social housing with those lacking stable accommodation. The findings indicate that stable housing reduces pressure on public services, improves health outcomes, and increases the likelihood of tenants remaining employed and contributing economically.
This perspective is not new. England's municipal housing was originally designed with the recognition that a city could not function without healthy employees living nearby. In the early 2000s, Gordon Brown and Tony Blair revisited this idea, arguing that public services would deteriorate if key workers were priced out of urban centres.
Key Workers and Housing Needs
The G15 report highlights that key workers, such as nurses, care staff, and retail workers, make up about 65% of London's social housing population, compared to 40% of the overall population. These workers were celebrated during the Covid-19 pandemic for keeping the city running, yet many would struggle to afford housing without social support.
Moving to the city's outskirts would significantly increase commuting costs and time, according to the research. Housing charities estimate that 90,000 social homes are needed annually in England, but no major party has committed to such numbers.
Political Perspectives on Housing
Andy Burnham has called for a return to council-led housing, citing Nye Bevan's postwar vision. In a 2024 interview with the London Review of Books, Burnham said: "If you read Nye Bevan's speeches, as I do, if you read his speech that was the postwar Housing Act, second reading, he talked about how housing needs to be thought of as a service, not a commodity to be traded and sold, a wealth creator. Everybody needs it, it's an essential service. And it was interesting how he positioned it like the NHS. And so that's the philosophy that we need."
