The £4.9bn reason to back social homes
Recently, we launched our research into the socio-economic impact of Welsh housing associations, undertaken in collaboration with Savills. The findings are stark - housing associations have a phenomenal impact on people's lives.
There are few things more fundamental than a safe, secure, and decent home. Yet, a housing crisis means too many people in Wales are stuck in homes that are unsuitable or unaffordable. Housing associations, as non-profit organisations rooted in their communities, are essential partners in ending this crisis .
The evidence is clear: Housing associations don't just deliver bricks and mortar - they create transformative socio-economic benefits and investing in housing is investment in Wales.
The hypothetical impact of housing associations building 20,000 new affordable homes over the next four-year Senedd term would generate a total combined benefit over 30 years that fundamentally changes lives and boosts the economy.
£4.9 Billion (NPV) in Gross Value Added (GVA) to the Welsh economy through construction and operation
£3.6 Billion (NPV) in positive impact on people and communities
£2.1 Billion (NPV) in savings for vital public services
The investment delivers immediate and long-term returns
A Workforce of Thousands: Construction would support a total workforce of 14,200 people per year. In the long term, 2,690 FTE jobs would be supported annually through the management of these homes.
Public Purse Protection: Over a 30 years operational period, public services would save £1.8 Billion, with the single biggest saving being £1.1 Billion from moving 3,900 households out of expensive temporary accommodation.
Benefits for Tenants: Longer term, tenants and communities would gain £2.8 Billion in benefits, including £1.3 Billion directly to tenants through cheaper social rents compared to other tenures.
Crucially the research shows that housing Associations aren't starting from scratch - they are proven delivery partners with a strong track record and are ready to end the housing crisis.
In 24/25 they:
Spent an estimated £1.49bn in Wales, equivalent to 85p of every £1
Supported an estimated 37,040 direct and indirect full time jobs
Spent an estimated £28m on community regeneration and tenancy sustainment.
Delivered 75% of all additional affordable housing (1)
(1) StatsWales, Additional Affordable Housing Provision by provider and year, 2024
The research highlights that housing associations are far more than providers of housing; they are drivers of transformation in Wales. This is best illustrated through the individual success stories and collaborative community initiatives that show how a secure home serves as a foundation for achieving personal and communal well-being.
The core mission of housing associations is to provide a safe, secure, home, which is fundamental for growth and progress. The positive impact, however, often extends into critical areas like education, employment, and mental health.
Empowerment
Dafydd, an employee from Hedyn’s resident engagement team, helped a resident determined to rebuild their life by helping them to access funding for an accountancy course.
The resident said: "Daf saved my life, without him (and Hedyn) I couldn’t have afforded the course" .
Stability
Olivia*, who was experiencing homelessness, was provided with a flat by Gorwel (Grŵp Cynefin’s support service). With support, she has since taken her A Levels, is working towards getting her driving license, and plans to attend university. Olivia says she "definitely wouldn’t have got to where I am now" without the stability and help provided.
Regeneration
Trivallis identified a skills gap that would have stopped local residents from accessing construction jobs created through the regeneration of Penrhys. To tackle this, they worked with Bluewater Recruitment, Communities for Work+, and Arco Training to deliver accredited training and employment support. As a result, 11 residents have achieved their CSCS cards, making them job-ready ahead of the construction work starting. This proactive approach ensures that money invested in regenerating Penrhys stays in the community, with local people benefiting from the opportunities created.
Collaboration
Hedyn is playing a vital role in delivering a large-scale regeneration project in Newport. Hedyn has been formed by the merger of Newport City Homes and Melin Homes and is leading a £47m transformation of the area. The flagship development will provide 158 new homes and relocate Ringland shopping centre to integrate with the 19 Hills Health and Wellbeing Centre - a new NHS centre with over 20 services available including GP services, Primary Care Mental Health, Dental, Paediatric Physiotherapy and Community Service Clinics. This collaborative regeneration of Ringland is helping to create a community hub that works for local people
As we look ahead, the heart of any future government’s plan for Wales must be a bold, solution-focused commitment to more homes, better homes, and healthier, fairer places.
Homes - for every future.