More than £5 billion could be added to the economy each year if the government meets its target of building 180,000 social rent homes over the next 10 years, research by a group of housing associations has revealed.

According to The Hyde Group, MTVH and The Guinness Partnership’s study, the ‘value’ of each social tenancy in England is nearly £30,000 a year, through savings to public services and economic opportunities for residents.

Consequently, the 180,000 social rent homes the government is aiming to build through its £39bn Social and Affordable Homes Programme would deliver an estimated £5.4bn in economic benefits and public sector savings, the research says.

The 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 five social landlords providing data for the research own or manage 160,633 general  needs homes, and generated at least £4.8bn of social value, or £29,982 per social tenancy, in 2024/25.

When extrapolated to England’s 4.3 million social homes, this gives an estimated total value of at least £87bn last year (compared with £77bn in 2023/24). Benefits to stakeholders include:

• £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 for Work and Pensions.

The report, Real value in the face of social challenges: a view of social housing, calculates the savings to the state, and benefits to other public bodies, of someone living in social housing, compared to someone living in temporary accommodation, with family and friends or in private rental accommodation.

Now Hyde, MTVH and The Guinness Partnership are asking the government to recognise the value housing associations add in providing social homes and support services to residents and communities. In doing so, the group is calling for the government to help them address the dramatic rise in the number of families living in temporary accommodation, the issue of in-work poverty and health inequalities caused by poor quality private rental housing.

They want the government to confirm the swift 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.

Andy Hulme, Group Chief Executive Officer of the Hyde Group, said: “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.

“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.”

Jim Clifford OBE, Sonnet Advisory & Impact Director, 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.”

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.”

Mel Barrett, MTVH Chief Executive Officer Mel Barrett, said: “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.”

A summary of the findings of this year’s Value of a Social Tenancy research can be downloaded at www.hyde-housing.co.uk/media/zybljbd3/value-of-social-tenancy-2025-all-has-final.pdf and Sonnet Advisory & Impact’s full report can be downloaded www.hyde-housing.co.uk/media/z5wbk1r0/vost-2025-sonnet-summary-report.pdf