The next government should invest in building 90,000 social homes a year to give the economy a £50bn boost, according to Shelter and the National Housing Federation (NHF).
Fixing the housing crisis could help ministers build their way out of recession in the short-term and boost the long-term health of the nation by reducing bills for homelessness, benefits and the NHS.
The analysis from the Centre for Economics and Business Research also laid out how building 90,000 social homes could directly support 140,000 jobs in the first year alone, see the government break even inside three years and offer taxpayers a £12bn profit over 30 years.
Polly Neate, chief executive of Shelter, said: “Homelessness is a political choice, with a simple solution. Building 90,000 social homes a year will not only end the housing emergency, but due to the wider economic benefits it brings, it will pay for itself within just three years.
“A safe and secure social home will give people a place to thrive – improving their health and access to work and education. All political parties must make the choice to end the housing emergency – they must fully commit to building 90,000 new genuinely affordable social rent homes a year for ten years.”
The economic analysis found the government would initially be required to spend £11.8bn to fund building 90,000 social rent homes every year for the next decade.