NHF calls for £2bn yearly affordable housing investment

The NHF said in its submission (28-page / 709KB PDF) to the Government's spending round 2015-16 that the Government should recognise the building of affordable homes as an "economically valuable activity" and that it should offer an investment programme beyond 2015-16.

It said that a Government investment of £8bn over a four year period, matched by an investment of up to £28bn from housing associations, would be sufficient to deliver up to 260,000 new affordable homes. This would help to create and sustain up to 150,000 jobs each year and contribute up to an additional £28bn to the economy over the period, it said.

The NHF said that statistics have shown that every affordable home built creates 2.3 jobs in England and generates an additional £108,000 in the wider UK economy. It also said that, for every £1 of gross value added as a result of investment in affordable homes, an additional £1.41 of gross value added is generated in the wider UK economy.

"Housing should be formally regarded as an 'economically valuable' area of capital expenditure, and steps taken to ensure that investment is available for as long a term as possible. This would offer the highest value for money and maximise the number of homes delivered," the report said.

The report also said that there is a "strong positive link" between affordable housing and private housing completions and that affordable housing can help developers access sites, facilitate agreements with local authorities and help improve the financial viability of schemes.

It also said that affordable housing provides an "early and certain" cash flow which is a "catalyst to much of private developers' current output".

The Government's 2015-16 spending review, which will cover Government expenditure from April 2015 onwards, will take place on 26 June.