The Guardian view on London’s social housing: pumping billions into the economy every year

The provision of homes needs to be thought of as a service, not a commodity to be traded. It is vital economic infrastructure, so let’s make it affordable for all

London’s city centre has long been a place where rich and poor live side by side, while so many other metropolitan equivalents – Paris, New York, San Francisco – remain the preserve of the rich. It maintains its mix today: in many inner London boroughs, between 20% and 40% of households live in social housing. A small but steady decline in social housing in these areas leaves many fearing that the city’s diversity is under threat.

What happens when cities become less socially mixed? The G15 group of housing associations, which provide social and affordable homes for about one in 10 Londoners, commissioned research recently on the economic contribution of those living in social housing. It found that they contributed £27.8bn to London’s economy in 2024, even after housing benefit was taken into account. Its methodology involved comparing the lives of people in social housing with those without a stable and affordable place to live. The conclusion was that stable and affordable housing reduces spend and demand on public services, promotes better physical and mental overall health, and results in a higher likelihood that tenants stay in work and contribute economically.

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