Right to adequate housing could save Welsh Government more than £11 billion, research says
Introducing a right to adequate housing - underpinned by law - and investing £5 billion in a house-building effort would save the Welsh Government £11.5 billion over a 30-year period, new research suggests.
The research – undertaken by Alma Economics – suggests that access to housing for all would save public money in Wales by improving health, educational and economic outcomes for those that otherwise would be homeless or living in inadequate housing.
According to the research report, 'The right to adequate housing in Wales: cost-benefit analysis', investing £5 billion in ending homelessness and improving housing would save £5.5 billion by improving the wellbeing of households due to moving from homelessness to secure housing, as well as due to reduced housing hazards as a result of housing adaptations.
The research also found that the investment would save local authorities around £2 billion due to reduced use of homelessness services.
In addition, it tallied the rental value of newly built houses (around £1 billion), costs savings to the health and social care system (over £1 billion), and savings to the criminal justice system (over £1 billion).
Finally, the model suggested that the policy would generate almost £1 billion in increased economic output.
The research was commissioned by Tai Pawb, Shelter Cymru and The Chartered Institute of Housing (CIH) Cymru, who have partnered to support the introduction of a bill that makes access to adequate and sustainable housing a human right in Wales.
According to the research report, key components of a 'right to adequate housing' bill would include the legal security of tenure, availability of services, materials, facilities and infrastructure, affordability, habitability, accessibility, location, and cultural adequacy.
In 2021, the Labour-controlled Welsh Government committed to publishing a White Paper to include proposals for a right to adequate housing as part of an agreement with Plaid Cymru to work together on policies that they have shared interests on.
CIH welcomed the research report as a resource for the Government to use in its drafting of the White Paper.
Commenting jointly on the report's publication, Alicja Zalesinska (CEO – Tai Pawb), Ruth Power (CEO – Shelter Cymru) and Matt Dicks (director – CIH Cymru) said the findings were the "clearest indication yet of the myriad benefits of introducing a right to adequate housing in Wales".
The trio drew attention to the report's finding that suggested the benefits could outweigh the £5 billion cost within six years of establishing the right to adequate housing.
They later added: "Wales can lead the way in its approach to housing as a human right – and so we look forward to working with Welsh Government and partners to help shape the forthcoming White Paper proposals on a right to adequate housing.
"Over time, everyone in Wales can have a good home. The independent research published today shows this doesn't just make moral sense, it makes sense for the public purse too".
Adam Carey
