Rachel Reeves: it's decision time!

On Wednesday 11 June, the government will decide how much to invest in social housing over the next five years. Our campaign is calling on the government to live up to its promise of change and properly invest in the social rent homes England so desperately needs.

Spending reviews are when the government sets out their funding plans for the next few years.

With the current 'Affordable Homes Programme' coming to an end in 2026, the government will have to decide how much they're going to spend on building social rent homes for the next five years.

That's why this is such an important moment for people who are homeless or are struggling to find a safe and secure home they can afford.

Ahead of the Spending Review, organisations like Shelter were invited to submit a representation to government on why they should invest in certain things – like social homes.

Here's a summary of what we've said:

The government needs to invest in 90,000 social rent homes a year for 10 years to end the housing emergency, boost the economy and meet its goal of building 1.5 million homes a year.

The country needs a robust successor to the Affordable Homes Programme 2021-2026 that will ramp up to 90,000 social homes a year by 2031. To do this it needs to earmark a minimum of £30 billion to £38.2 billion for the first five years.

We believe government should do this because high housing costs are the biggest tax on people's potential and housing insecurity robs millions of people of their future. A social housebuilding programme and boosting council capacity would not just end homelessness, it would transform the lives of millions and give people the stable, affordable and decent homes they need.

Ending the housing emergency is a smart investment

We commissioned research with the National Housing Federation showing that building 90,000 social homes would add £51.2 billion to the economy.

Building these homes would support almost 140,000 jobs – and the initial costs would be paid back within 11 years. Over a 30-year period, building 90,000 social homes results in a £12 billion profit for the taxpayer.

It is also the only way we can provide the secure tenancies and predictable housing costs for people to put down roots. By building social homes, we enable people to have control over their lives.

That's why the economic benefits continue over the longer term. The research also showed that building these social homes could save the NHS £5.2 billion, as well as creating savings for the educational system due to fewer disruptions to education. Through the management of more social homes, there would be wider benefits including reduced homelessness, increased employment, education and improved healthcare.

Ending homelessness AND putting money back into the housing system

With record numbers of homeless households and too few social homes, local authorities are struggling with extremely constrained budgets and demands.

The cost of housing 159,000 children in poor quality temporary housing is £2.29 billion annually.

In 1975/76, the government allocated 96% (£21.3 billion of the £22.3 billion) of its housing expenditure to building homes. In 2021/22, the government allocated only 12% (£3.6 billion of the £35 billion) of its housing expenditure to building homes.

Money spent on housing benefit props up the private rented sector – with money going directly to private landlords.

Money that helps people pay rent for their social home stays in the system. It's recycled, rather than being lost. It helps councils and housing associations keep homes in a decent state and helps them build more.

That's why building social homes is an investment – it will keep the money in the housing system, subsidising more new homes.

It's vital we stop spending money on short-term, damaging solutions to homelessness and invest in long-term solutions that provide affordable, stable homes.

Social housing is a dependable investment

Bold and ambitious action is needed if the government is to meet its 1.5 million housing target, end homelessness and, in turn, boost the economy. Social rent must be at the heart of both short- and long-term strategies, as well as building 90,000 social rent homes a year by 2031.

The turmoil of recent years and uncertainty of global politics show how important it is to foster resilience by investing in the foundations of the country.

Relying solely on the private market for housebuilding is risky: often outputs and supply drop off exactly when homes are required the most. When prices drop, speculative developers slow down building or mothball sites. By consequence, because demand is practically insatiable, social housebuilding is countercyclical and recession busting, protecting jobs, boosting growth and providing a genuinely affordable secure home for people affected by economic uncertainty.

In times of stagnant growth, government spending is the most effective way to generate demand within the economy. And it is clear that a mass-scale social housing building programme of 90,000 social rent homes a year, for 10 years, fits the bill.

Why now?

The can has been kicked down the road on housing for too long. Long-term investment has been delayed, and we now know the impact.

Spending on temporary accommodation has doubled in five years. There's a record number of children growing up in temporary accommodation and councils are facing bankruptcy.

People living in poor quality homes, not living where they work or near where their children go to school – these things have long-term negative impacts.

A decent home that people can afford is the best solution, and it makes economic sense.

If you'd like to get involved in the campaign, you can sign our open letter to the chancellor.