The report, published today (4th October), claims that by reducing homelessness to a minimal level through the provision of more housing could significantly reduce costs related to several areas — including health, social, homeless, and criminal justice services, as well as unemployment benefits.

The savings estimate is based on the report’s proposal that government subsidy be gradually raised up to £5bn a year over the next five years or so, to enable the building of 72,000 additional social and/or affordable homes a year.

In fact, it states the £1.5bn figure is an under-estimate, as it does not include all the costs in these sectors, or wider beneficial impacts on economic growth, productivity and life chances.

According to the study, the costs of homelessness in the UK — encompassing people in temporary accommodation and insecure or inadequate housing, as well as rough sleepers — are estimated to amount to £6.5bn a year.

The report also outlines how its social and affordable housing targets could be met — it argues that new housing should be a mix of social rent homes (partially discounted affordable housing) and dwellings to be sold or rented at full market value, in order to subsidise the costs of the social housing and to prevent ghettoisation.

It notes that many new social and affordable dwellings would need to be provided by local authorities.  

The report coincides with the launch of the Social and Affordable Housing Initiative — a coalition led by UCL, architect firm John McAslan + Partners and affordable housing charity Dolphin Living, to establish impactful strategies to address Britain’s housing crisis.

UCL’s applied health research professor Rosalind Raine commented: “The housing crisis impacts on individuals, families and communities directly and indirectly.

“It is possible to tackle the holy grail of improving everyone’s lives, with benefits accruing the fastest for the most vulnerable.

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“Our report does not rely on polemic, but on published data — it summarises the evidence on the health and wider social impacts, the economic costs and savings, and highlights exemplars of social and affordable housing which can feasibly be scaled nationally.”

Olivia Harris, CEO at Dolphin Living, said: “In advocating for accelerated and greater provision of affordable housing, we need to remember key and critical workers who have historically accessed social housing.

“To create and maintain balanced communities and a workforce who can meet the needs of our communities, new affordable housing should include specific provision for homes for discounted rent for workers on modest incomes.”

Uliana Kuzmis, deputy managing director of development finance at HTB, agreed with the findings of the UCL report: "Housing is a fundamental human right that needs to be extended to every homeless person — it is clear that action needs to be taken.”

However, she stated that the recommendation to build an additional 72,000 social/affordable homes a year could be a tough challenge, as having a higher ratio of affordable housing could squeeze developers’ profits and affect feasibility of projects.

“I appreciate the need for a mix of social-rent housing, partially discounted affordable housing, and dwellings to be sold or rented at full market value, in order to prevent ghettoization, but the ratios should be better balanced,” she added.

“Projects of this nature will not be possible without financial support, grants and buy back arrangements with local authorities — that will encourage the developers to undertake these projects while ensuring that their profit margins are maintained and their exit is secured.”

John McAslan, founder of John McAslan + Partners, added: “With some of the finest architects, engineers, public health experts, housebuilders, educationalists and creative power, Britain’s community of makers, thinkers, designers and doers need to be mobilised now to put social and affordable housing at the top of the societal agenda.”