Ending Expensive Social Tenancies: Fairness, higher growth and more homes

Monday, 20 August 2012

Ending Expensive Social Tenancies: Fairness, higher growth and more homes

Synopsis

Selling expensive social housing as it becomes vacant could create the largest social house building programme since the 1970s. The sales would raise £4.5 billion annually which could be used to build 80,000-170,000 new social homes a year and reduce the housing waiting list by between 250,000 to 600,000 households in five years.

The report says that ending expensive social housing:

  • Will generate growth and jobs. This reform should allow 80-170,000 new homes every year. This would create 160,000-340,000 jobs a year in the construction industry.
  • Is extremely popular with all sections of society. 73% of people including social tenants think that people should not be given council houses worth more than the average property in a local authority. By 2:1 voters agree people should not be given council houses in expensive areas.
  • Has no real effect on employment. More expensive areas do have slightly higher employment rates but these differences are very small. Since people commute to work – either by public transport or car – the only effect of moving tenants is reducing time spent travelling and travel costs. This is not a major driver of employment
  • Raises tenants’ standard of living. The majority of social tenants are either totally or largely reliant on benefits. Someone living on benefits in an expensive part of London will pay a 10-15% premium compared to someone living in a cheaper area.
  • Reduce the housing waiting list by between 250,000 to 600,000 households in five years. The overwhelming majority of people waiting for a council house will benefit from these reforms.

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If you would like a hard copy of this report priced at £10 + £3 p&p then please email: janet.batterbee@policyexchange.org.uk