Commission calls for £1.3bn fund to create more social homes

The Affordable Housing Commission has called on the government to create a £1.3bn National Housing Conversion Fund to help tackle the shortage of social homes in England.

In a new report out today (23 September), the commission says such a fund would make grants available to housing providers to purchase existing private rented properties and convert them into new social homes – at genuinely affordable rents.

It warns of a housing market downturn in the aftermath of the pandemic and the damage it will have on tenants, homeowners and private landlords.

The report argues that a conversion fund would enable social landlords and community-led housing groups to buy up private rented housing, as well as homes for sale on stalled sites.

It claims a conversion fund would deliver 42,500 new social and affordable homes with the majority at social rents and generate 9,300 additional jobs.

The fund is calculated to require £1.2bn in grant funding, but with housing welfare savings and wider benefits the net cost to government would be £623m.

In addition, the net economic benefits of increased housing, economic activity and distributional benefits over 30 years would total £1.3bn over the next 30 years.

‘We believe the chancellor has a great opportunity to stimulate the economy, boost jobs and tackle the housing crisis by backing plans for a National Housing Conversion Fund,’ said commission chair, Lord Best.

‘This would bring empty and run-down properties back to life, stimulate activity on stalled sites, and assist landlords exiting the market, while addressing the acute shortage of homes at truly affordable rents.’

The full report – A National Housing Conversion Fund: buying properties to boost affordable housing supply’- is available to read here.