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

The resource "Beyond New Build: Repurposing Private Rented Housing to Deliver a New Generation of Social Homes for England" is published by the New Economics Foundation, authored by Alex Diner. This document addresses the pressing housing crisis in England, highlighting the urgent need for sustainable housing solutions.

England is experiencing a severe housing crisis, with approximately 8.5 million people facing unmet housing needs. Among these, 4.2 million individuals require social housing to address their acute needs. Factors such as rising rents and the threat of eviction exacerbate the challenges faced by private renters, many of whom live in poor-quality, energy-inefficient homes. The report underscores that existing policy solutions, like Help to Buy, have failed to address the core issues and instead inflated demand and prices, making housing increasingly unaffordable.

The report identifies four main problems: a lack of supply of affordable housing, particularly social homes; poor-quality housing, especially in the private rented sector (PRS); unaffordability of housing; and an inequitable distribution of homes. Since the introduction of the Right to Buy scheme in 1980, over 1.4 million social homes have been lost, while the number of households renting privately has more than doubled. In 2021, around 900,000 homes were reported to have damp and mould, with a significant proportion in the PRS failing to meet the Decent Homes Standard.

The report argues that almost half of the housing needs in England could be met through social housing. In 2021/22, only 3.2% of new homes built were for social rent. The ongoing increase in rents, predicted to rise by 4% in the coming year, adds strain on households already facing a cost-of-living crisis. Social tenants are projected to encounter a 7% rent increase, while social landlords grapple with a funding gap of £4.9 billion.

To tackle these interconnected problems, the New Economics Foundation has formed the Homes for Us Alliance. The report advocates for repurposing private rented housing into social homes as a viable solution. This approach would not only increase the supply of affordable housing but also enhance the quality of existing homes, improve energy efficiency, and stabilize rents in the PRS. The report suggests that historical precedents exist, where local authorities have successfully converted private properties into social housing.

The report outlines several policy options, including tax reforms to encourage landlords to transition properties to social housing, updated compulsory purchase orders, and rent controls that could facilitate acquisitions by social landlords. Furthermore, it calls for the expansion of the Decent Homes Standard to the PRS and enhanced energy efficiency requirements to address the ongoing housing crisis while also contributing to the UK’s carbon reduction targets. In conclusion, the New Economics Foundation's report presents a comprehensive overview of the housing crisis in England and emphasizes the need for innovative solutions through the repurposing of existing housing stock. The proposed strategies align with sustainability goals and aim to create a more equitable housing system that meets the needs of vulnerable populations.