05 August 2020
Summary: At MTVH, we are motivated by our ambition to ensure everyone has a home and the chance to live well. As a long-term partner to communities, we understand the positive impact a safe, secure and affordable home has on people’s lives - and the important contribution MTVH makes to the economy across the country.
Supporting the economic recovery
Today, we are releasing the findings of new research into the socio-economic value of an MTVH tenancy. This research helps to demonstrate and understand the impact of MTVH’s social homes on people, places, and the public purse, through comparing the impact of living in social housing to alternatives, such as living in temporary housing, the private rented sector or with friends and family.
This research estimates that MTVH social tenancies contribute £713m a year to the UK economy – which equates to an £11,261 contribution per home – through savings to areas of UK public spending and boosts from house-building and maintenance. For every £1 invested in MTVH, £1.53 is returned to society.
Using a model built by Sonnet Advisory & Impact, combined with data and informed assumptions about MTVH tenancies, this research quantifies the economic contribution and savings to public sector organisations generated by MTVH social tenancies. The model has previously been used by similar types of housing associations and is a proven and transparent way of measuring social value.
The findings of this research confirm the vital economic contribution social housing makes to the economy and public sector, which is incredibly important to the economic recovery the country needs to see. The research also demonstrates the transformative impact on social cohesion and the wellbeing of communities that social housing provides.
Each year, MTVH social tenancies:
- Contribute at least £287m to the economy; through boosts from building new homes and maintaining existing stock.
They also:
- Save local economies at least £174m; through supporting economic participation and helping people get back to work.
- Save the NHS at least £83m; through fewer GP visits and reduced health inequalities.
- Save Local Authorities at least £79m; through well-managed social homes and an overall reduction in the need for public services.
- Save the Police and Criminal Justice System at least £65m; through supporting reduced offending and timely social services support.
- Save the Education Sector at least £5m; by providing holistic support that enables children to get to school.
- Save the Department for Work and Pensions at least £14m; through boosting employment and reducing Universal Credit claims.
- Save the Fire Service at least £2m through providing safe, secure homes and support with maintenance.
- Save Banks and Creditors at least £1m; through providing financial support and reducing the likelihood of problem debt.
People powered living
As this research demonstrates, good quality social homes create positive outcomes for individuals, communities, and society as a whole. They provide a foundation for secure futures, are pivotal in tackling inequalities, and improve life chances for young people.
At MTVH, we are working hard to support our customers better every day and have used learnings from this research to re-shape the aims and ambitions of our Resident and Community Empowerment strategy. We have re-focused our services to deliver more direct and tailored support to secure better outcomes for our customers, recognising their broad diversity and geographical spread. Using a bespoke theory of change, outcomes, indicators, and data assurance methods designed by Charities Aid Foundation (CAF), we aim to take this research further to create tangible outcomes for our customers and remove barriers which limit their ability to live well, such as poverty and social exclusion.
Through our local partnerships and delivery of varied services, we know that social purpose and economic improvement can be aligned. As the economic impact of coronavirus sets in and our customers face the challenges that accompany it, we recognise that this connection has never been more important. This new research puts social homes firmly at the heart of a stronger economy.
Dominic Briant, MTVH’s Head of Research, Contracts and Funding said: “This assessment shows just how important a secure home and tenancy with MTVH is, not only to individuals, but to the wider economy. Every day, we see the different positive impacts of a safe, affordable and well-maintained home and by quantifying this impact, we will be able to provide better support to those who need it most. This research will help us improve services for residents and communities as well as gaining further interest in the importance of social value.
“I would like to thank Sonnet Advisory CIC and Hyde Housing Group for their investment in developing the model that we have used. The social housing sector is making significant improvements to value reporting, including initiatives like the Environmental, Social and Governance (ESG) White Paper launched recently. We welcome these developments and look forward to continuing to use our position as a long-term partner to communities to boost the health of both society and the economy – which is now more important than ever given economic recovery required from coronavirus.”
*Sonnet Advisory & Impact have not reviewed or validated the results we have produced by use of their methodology*