Beyond New Build: Repurposing Private Rented Housing to Deliver a New Generation of Social Homes for England

Overview of the Report

The document “Beyond New Build: Repurposing Private Rented Housing to Deliver a New Generation of Social Homes for England” is a research paper produced by the New Economics Foundation (NEF), a charitable think‑tank known for independent policy analysis. Authored by Alex Diner, the paper was published in February 2023 and presents NEF’s findings and policy recommendations on transforming England’s private rented sector (PRS) into social housing.

Scale of the Housing Crisis

England faces a severe housing shortage: in 2018/19 around 8.5 million people had unmet housing need, with 4.2 million (≈1.6 million households) requiring urgent social tenancy. Private renters now constitute 19 % of households (≈4.6 million), up from 9 % in 2008, while socially rented homes fell from 31 % (≈5.4 million) in 1980 to 17 % (≈4 million) in 2021/22 – a loss of 1.4 million social homes. Over‑crowding affects 732 000 households, and roughly 1 million people are at risk of homelessness.

Poor Quality and Energy Inefficiency

In 2021, 900 000 English homes suffered damp or mould, half of them in the PRS. About 1 million PRS properties (23 %) failed the Decent Homes Standard, and 55 % of PRS homes held EPC ratings of D or below, leaving 2.4 million tenants in cold, draughty housing. Upgrading these homes could save an average household £500 per year on energy bills and contribute to the UK’s 2050 carbon‑reduction goals.

Financial Pressures on Tenants and Taxpayers

Private renters spend an average of 33 % of household income on rent, the highest share across tenures. Public housing support costs amount to 1.4 % of UK GDP, far above the OECD average of 0.3 %. Between 2021/22 and 2025/26, subsidies for PRS landlords are projected to cost £58.2 billion—five times the total funding of the Affordable Homes Programme over the same period.

Current Policy Landscape

Recent policies include proposals to extend the Decent Homes Standard to the PRS, introduce a national landlord register, and raise minimum EPC standards. However, funding for social housing remains limited: only 7 528 new homes for social rent were added in 2021/22, representing 3.2 % of the 360 000 social homes needed that year. Local authorities have struggled to use new borrowing powers, delivering just 8 100 of 642 450 new starts between Q4 2018 and Q3 2022.

Policy Options Suggested by NEF

NEF outlines five levers to accelerate repurposing:

1. Tax reforms – adjust capital gains, introduce targeted national insurance for PRS landlords, and tighten rules on short‑term lets.
2. CPO and equity models – empower councils to acquire equity stakes in PRS properties and enforce remediation costs through land‑value capture.
3. Rent controls – combine rent caps with incentives for social landlords to purchase PRS units, mitigating supply‑side risks.
4. Right‑to‑Buy reform – redesign the scheme to fund social‑rent conversions rather than private sales.
5. Targets and grantmaking – set explicit acquisition targets, expand grant caps for retrofitting, and build local‑authority capacity for large‑scale conversions.

Expected Outcomes and Benefits

If implemented at scale, repurposing could dramatically increase the supply of affordable, energy‑efficient homes, reduce reliance on new construction, and lower carbon emissions. Upgrading PRS stock would improve tenant health, cut fuel‑poverty, and lessen the taxpayer burden on housing benefits. Moreover, shifting a portion of the PRS back to social rent would rebalance tenure distribution, easing overcrowding and homelessness pressures.

Key Figures to Remember

• 4.6 million private renters (19 % of households)
• 4 million social renters (17 % of households)
• £4 500 budget for the report’s production (metadata)
• 609 KB PDF size (metadata)
• £58.2 billion projected PRS subsidy cost 2021‑26
• £7 528 new social homes added in 2021/22 These facts illustrate the magnitude of England’s housing challenges and the potential impact of converting private rented properties into a new generation of sustainable social homes for a pan‑European audience interested in climate‑friendly, equitable housing solutions.