The United Kingdom faces a housing affordability crisis. Fuelled in large part by a housing deficit, the crisis has resulted in some council housing waiting times exceeding a century. Home completions in 2025 fell to 202,800, the lowest level since 2015, and 100,000 homes below the number needed annually to meet Government targets.

Social housing forms an essential backbone to delivering increased housing supply. But planned delivery is falling short. Savills analysis shows affordable housing delivery remaining stable to March 2025, but an expected 18% fall in 2025/26 (equivalent to around 10,000 fewer homes). This signals a deepening supply gap just as affordability pressures intensify.

When a developer invests in affordable housing, they are investing not only in the monetary return that the letting and sales of the properties will garner, but also in wider societal benefits and uplifts. By measuring, understanding, and communicating this wider societal benefit, developers can gain the clarity necessary to shape outcomes in active partnership with the community.

Economic benefits

In addition to reduced rents (typically 50–80% of market rate depending on tenure), residents tend to have lower energy bills and moving expenses.

New-build affordable homes typically offer substantially higher energy performance than older stock, supporting lower running costs for residents and contributing to long-term affordability.

Lower moving expenses are the result of affordable housing residents moving, on average, far less than residents of market rent properties. Affordable housing typically supports greater residential stability than the private rented sector, helping families maintain continuity in employment, education, and community life. These factors result in a significant cost-of-living decrease.

Greater societal benefits

Alongside easing the monthly cost pressures faced by renters, investing in affordable housing has greater societal uplifts. One such benefit is an investment in the education and future earning potential of the children who reside in such affordable units.

Moving less means students benefit from a more stable educational experience, fewer missed school days, fewer curriculum switches, and more stable social lives.

A living environment also has a large impact on health. Socially rented accommodation has been shown to move families to more stable living environments, improving their health outcomes.  

Best in class affordable housing

Places for London, the dedicated property company for Transport for London (TfL), recognises the value of affordable housing beyond its balance sheet. It has committed to a high proportion of its housing development being at affordable tenures, built hundreds of affordable units, and has a strong development pipeline. In 2024, Places for London’s affordable housing delivered an estimated £6 million of societal benefits, through cost-of-living reductions, educational uplifts, and savings to the NHS.

Places for London’s actions recognise the priority need for more affordable housing and the potential to foster community stability, create opportunities for collaboration, and align with stakeholder priorities.

By articulating affordable housing as a lever for economic, health, and educational uplift, the conversation is transformed from obligation to opportunity. This approach equips estate holders with a compelling, evidence-based narrative that aligns with their strategic goals, strengthens stakeholder trust, and positions them as leaders in sustainable development.

Further information

Contact Atara Saunders

In Plain English: Impact Investing