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Kate Henderson
Kate Henderson is Chief Executive of the National Housing Federation (NHF), the voice of housing associations in England.
...moreInvesting in housing will help our economy bounce back
The damage the pandemic will do to the economy will badly hit the communities the housing sector serves. Investing in housing is vital for a successful long-term recovery, writes Kate Henderson
In April I wrote about how the sector has been pulling together to help tackle the immediate challenges presented by coronavirus.
In tough circumstances housing associations across the country have worked hard to fulfil their core social purpose of providing a secure, affordable home to everyone who needs one.
I’ve been so inspired by our sector’s work to help residents get through this immediate disruption. Indeed, housing associations have already made a number of pledges about this, including keeping residents secure in their homes, helping them to get the financial support they need, and acting compassionately if they are struggling.
But we know that housing associations are also starting to think about the wider damage that this crisis could do to the economy, and therefore to the communities the sector serves.
The restrictions that are being put in place are necessary to help protect public health, but they will also have an economic effect.
By impacting both on demand from the public and on the ability to supply goods and services, the economy is facing a sharp contraction that could hit the public purse, businesses and household incomes.
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At the National Housing Federation (NHF), we have been working with housing associations across the country to understand how the sector can help communities and the economy emerge from this crisis.
We have identified five key themes, which we are now starting to discuss with policymakers and other partners.
First and foremost, we know that housing associations want to build on the momentum that has taken most of the country’s rough sleepers off the streets and into some form of emergency accommodation.
They will need a permanent home to move on to, as just the first step towards providing the social housing and support needed to end homelessness more widely. As well as being the right thing to do morally, this also makes good economic sense.
It’s much more cost effective for the government to invest in building the social housing we need and providing long-term support, rather than paying for costly, acute emergency services such as temporary accommodation.
Second, the housing association sector can help the economy by kick-starting the construction sector. By helping to get sites open again, housing associations can provide a valuable source of work to construction businesses, especially smaller firms.
This in turn will create jobs and support supply chains, all while delivering much-needed new, greener homes.
In the long run, we know that housing associations want to make sure that enough social housing is being built to meet the country’s needs.
This should also include a new drive to invest in supported housing, providing care and support that fit the needs of the older and vulnerable people who have faced the greatest risks from this pandemic.
Again, all of this would be good for the economy and the benefit bill: helping reduce payments on housing benefit and saving money for the Treasury.
Importantly, many of these new social homes would benefit the key workers who are keeping the country running.
Our research shows that more than two million key workers live in privately rented homes – more than a million of these are on low salaries, meaning that many key workers will struggle with high rents and lack of security.
The nurses, care staff and retail workers we are relying on now more than ever are exactly the people who would benefit from a new generation of social housing, just as veterans of the First World War came back to a mass programme of building ‘homes for heroes’.
Housing associations can also contribute to an economic stimulus through their work at the forefront of efforts to decarbonise homes in the UK.
An ambitious programme to plan for and start retrofitting existing social housing over the next few years would add huge weight to this, helping to tackle climate change while also stimulating the economy and paving the way for a wider decarbonisation programme.
“The nurses, care staff and retail workers we are relying on now more than ever are exactly the people who would benefit from a new generation of social housing, just as veterans of the First World War came back to a mass programme of building ‘homes for heroes’”
Finally, housing associations can also provide the direct support to communities that will help them to bounce back from this crisis.
Our sector is embedded in neighbourhoods across the country, which means it is well placed to provide what the community needs on the ground to recover from coronavirus – whether that’s investment in local infrastructure, training, and employment or support services.
Now, we are starting to develop more detail on these proposals, working alongside our members, local and national government, and other partners.
While we can’t be sure of what the full scale of the consequences of this present crisis will be, it’s likely that the economy will take a big hit.
At the NHF, we are in regular contact with politicians and other policymakers, and are making the case for the investment the sector needs to help soften this blow.
By working together with the government, housing associations can play a vital role in helping the economy and our communities to bounce back from coronavirus.
Kate Henderson, chief executive, National Housing Federation
