New social housing could add up to £5bn a year to economy by 2035

Labour then confirmed it would be targeting at least 60% of these homes to be at social rent which, if achieved, would be a six-fold increase on the number of social homes built in the decade up to 2024.

The new research comes after another report this summer highlighted the potential social impact if the government were to achieve its target of building 1.5 million homes by the end of the current parliament. 

The new study was commissioned by the Hyde Group, Metropolitan Thames Valley Housing (MTVH) and the Guinness Partnership, and used data from the 160,000 general needs tenancies managed by the trio as well as by A2Dominion and Platform.

The team at Sonnet Advisory & Impact, led by Jim Clifford, an honorary professor at Sheffield Hallam University, calculated the value of the social housing tenancies compared to temporary accommodation, private rental housing and staying with family or friends.

They used the value of a social tenancy (VoST) model developed by in a study published by Hyde and Sonnet in 2018 which back then placed the value of a social home at nearly £17,000, meaning that as of 2025 the benefits of these tenancies have grown by around 80%.

Following the research, Hyde, MTVH and Guinness have called on the government to help support the social housing sector ahead of this week’s Budget.

They want to see rent convergence set to £3 per week, the new Warm Homes Fund delivered in full and the two-child benefit cap axed.

The trio also back “simple and predictable” requirements for the Decent Homes Standard and ensuring SAHP grant rates support the most affordable social rent homes.

Andy Hulme, group chief executive officer at Hyde, 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 [and] to find a job, [and allows] their children to go to school, and them to build local connections and feel part of a community.”

He 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 co-ordinated, cross-sector investment in social housing and community services.”

Catriona Simons, group chief executive at Guinness, 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.”

Mel Barrett, chief executive officer at MTVH, said: “This report is a powerful reminder of how much a secure, affordable home matters, and provides the foundation for opportunity.”

Jim Clifford, advisory and impact director at Sonnet, said: “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 relationships with others, as well as helping give them direction and fulfilment.”