This report assesses the economic impact of public capital investment in new affordable housing. The report critically reviews new and existing evidence to assess the social and economic impact of capital investment in affordable housing. We set out our findings in line with our framework for assessing the impact of public capital investment. Our framework is in line with HM Treasury’s Green Book, which specifies the methodology for appraising policies.

We find that government investment in affordable housing supports a range of social objectives by improving outcomes for residents, in areas including health, crime, and employment. Affordable housing supports some of the highest-need individuals in society. It offers a more affordable, often better-quality alternative to renting privately, both through the quality of homes and the services that housing associations deliver to support tenants. Further, affordable housing developers are making public funding go further, for example by cross-subsidizing new affordable homes from sales and other commercial activities.