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Affordable housing is often viewed from a social perspective, simply as a vital provider of safe, clean homes for those most in need. Whilst this is undoubtedly the case, the sector’s broader contribution to the growth of local and regional economies tends to go under the radar and this needs highlighting.

Affordability underpins the economic and social wellbeing of households, and the UK’s 1,500 housing associations have a fundamental part to play in local economic wealth-building, especially in historically marginalised communities where a large proportion of the sector’s 2.5 million homes are located. Across Liverpool City Region, for example, housing associations own and manage 150,000 homes: that is 22% of all residential properties within the region.

Driven by its mission of growing stronger communities, North West growth and regeneration group Torus embraces inclusive growth as a primary business model objective. As well as tackling the shortage of affordable homes head on, core activities are engineered to enhance the social infrastructure across Torus heartland areas – unlocking regional economic development and place-based competitiveness.

Torus is the North West’s largest stock-holding housing provider, with around 40,000 homes for rent and future ownership, mostly in and around Liverpool, St Helens and Warrington. The group is committed to developing 5,300 new homes over the next five years, working as a key provider for local authorities and other strategic partners to regenerate communities and support wider economic growth.

In part, such growth is driven through investment in existing and new housing. At Torus alone, more than £100 million is invested annually to improve existing stock and develop more homes (2018-19: £55 million on existing stock and £95 million on the development of new homes), as part of a total group spend of around £225 million. 

This investment directly supports a host of local jobs, from architects to contractors and building materials suppliers. According to National Housing Federation estimates, investing in one affordable home directly supports 2.4 jobs, every home managed by a housing association adds about £6,500 per year to the UK economy, and the sector as a whole contributes more than £6.7 billion to national GVA. 

Other benefits arising from housing are less tangible, but are nonetheless critical to inclusive growth. Housing associations own and manage homes that allow low-paid households to participate in local economies, offering a spectrum of rental and future home ownership properties that are tailored to meet the needs of communities. Evidence suggests the stability of the affordable housing sector helps to reduce the overall volatility of the housing market, as well as tackling the housing crisis and – through tenures such as Shared Ownership and Rent-to-Buy – responding effectively to the government’s renewed focus on rising home ownership.