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Social Housing Contributed £27.8bn to London's Economy in 2024

Research commissioned by the G15 group of housing associations found that social housing residents contributed £27.8 billion to London's economy in 2024.

  • Social housing residents contributed £27.8 billion to London's economy in 2024, after housing benefit was considered.
  • Key workers, including nurses, care, and retail workers, account for approximately 65% of London's social housing population.
  • Between 20% and 40% of households in many inner London boroughs live in social housing.

Research commissioned by the G15 group of housing associations, which provides social and affordable homes for about one in 10 Londoners, indicates that those living in social housing contributed £27.8 billion to London's economy in 2024. This figure was calculated after housing benefit was taken into account.

The research compared the lives of people in social housing with those without stable and affordable accommodation. It concluded that stable and affordable housing can reduce demand on public services, improve physical and mental health, and increase the likelihood of tenants remaining in work and contributing economically.

Key workers, such as nurses, care workers, and retail workers, represent about 65% of London's social housing population, compared to 40% of London's overall population. The research suggests many of these workers would struggle to afford to live in major cities without social housing, with moves to outer areas potentially adding thousands to commuting costs and hours to working days.

In many inner London boroughs, between 20% and 40% of households currently reside in social housing. However, a small but steady decline in social housing in these areas has led to concerns about the city's diversity.

Why this matters: The findings suggest that social housing is a significant economic contributor and a vital asset for the country's resilience, particularly for average-wage earners and key workers.

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