We're calling for the UK to build 1 million more homes for social rent. 

Social housing is an integral part of the UK’s housing landscape with millions of people benefiting from stable and genuinely affordable homes. Social housing needs to be regarded a key piece of national infrastructure, alongside the transport, energy, and digital infrastructure that provide the basic foundations of thriving communities and a prosperous economy. Its absence exacerbates insecurity, inequality and poor societal outcomes.

Lloyds Banking Group is the biggest supporter of social housing in the UK. Since 2018, we’ve supported more than £18.5 billion of funding to the sector. We currently work with over 340 housing associations of all sizes, from small local associations of several hundred homes to larger regional associations with tens of thousands of homes, and from Osprey Housing in North East in Scotland, to Grŵp Cynefin in Wales.

Each of these has different needs, whether it is term funding, capital market funding or expertise and advice, our experience in the sector is helping these clients meet the UK’s housing needs.

Through our pensions and long-term savings brand Scottish Widows, we provide longer-term investment in social housing.

 

Building futures – a new era of investment in social housing

The country needs a significant increase in investment in social rent housing. In this paper, we set out our prospectus for action – a package of measures that will help deliver more social homes.

The paper includes proposals for two new investment mechanisms that could generate up to 200,000 new homes for social rent over 10 years and wider reforms to the social housing sector.

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What is social housing?

Social housing is typically supplied at reduced rent to those who would not normally be able to afford rent in the private rental sector or own their own home. It is normally provided either by housing associations or directly from local authorities. Government subsidies help to build and maintain social housing stock across the country.

There is a growing market for shared ownership homes, where individuals take on a share of a property, usually 25%-75%, with rent being paid on the remainder. Housing associations are one of the biggest suppliers of shared ownership homes. 

More on social housing

Why is social housing important?

Social housing makes a significant contribution to the UK economy. As well as providing discounted rents for those who need them, social housing has also been shown by research to add value to society by reducing unemployment, improving health and improving educational attainment by providing stable homes.

It is well known that the UK has a housing shortage. In 2021, the sector was responsible for building around 40,000 homes, out of 210,000 built across the UK last year. But it is also clear that there is a shortage of social housing, with a shortfall 100,000 new social homes every year and over a million people currently on the waiting list in England alone.

Tackling the housing crisis

We believe enabling people to find safe and sustainable homes is central to our purpose.  However, despite the construction of around 40,000 homes in 2021, there is still a chronic shortage of social housing in the UK. 

This is why we are committed to working with housebuilders to expand the availability of quality social housing across the UK. These new homes will not only provide affordable housing for those in need – they will also make a significant contribution to the UK economy.

Beyond this, we are also working to improve the energy efficiency of housing to make homes more sustainable and to help people save on their energy bills.

According to the Home Builders Federation, properties rated EPC A or B can save up to £2,600 a year, while also reducing their carbon emissions. This demonstrates the fundamental role that energy efficiency measures will play in the long-term provision of affordable and sustainable homes.

With our charity partner Crisis, we're calling for the UK to build 1 million more homes for social rent by 2033. 

Tackling the housing crisis

We believe enabling people to find safe and sustainable homes is central to our purpose.  However, despite the construction of around 40,000 homes in 2021, there is still a chronic shortage of social housing in the UK. 

This is why we are committed to working with housebuilders to expand the availability of quality social housing across the UK. These new homes will not only provide affordable housing for those in need – they will also make a significant contribution to the UK economy.

Beyond this, we are also working to improve the energy efficiency of housing to make homes more sustainable and to help people save on their energy bills.

According to the Home Builders Federation, properties rated EPC A or B can save up to £2,600 a year, while also reducing their carbon emissions. This demonstrates the fundamental role that energy efficiency measures will play in the long-term provision of affordable and sustainable homes.

With our charity partner Crisis, we're calling for the UK to build 1 million more homes for social rent by 2033. 

In England, there is an annual shortfall of

100,000

secure and sustainable social homes.

 

84%

of peope living in social homes don’t know if the property they live in has an up-to-date EPC rating .

 

Our partnership with Crisis

We have partnered with Crisis, a UK national charity for people experiencing homelessness. 

Together, we're calling for the UK to build 1 million more homes for social rent by 2033. 

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Hear from our housing expert

Video | 1 min

Hear from Chris Yau, Director of Origination & Sustainability in our housing team, on how we’re helping communities access quality, secure and sustainable social housing. 

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Meet our clients

We support over 200 housing associations across the UK, from small local associations of several hundred homes to larger regional associations with tens of thousands of homes. Here are some the stories around how we are working together to improve social housing across the UK.

Strata and Together Housing

Video | 1 min 

House builder Strata and housing association Together Housing are working to provide more sustainable homes that offer a high standard of living.

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The Hyde Group

Video | 8 min

Charlie met our clients, The Hyde Group – a housing association operating out of Lambeth, an area with some of the highest rates of deprivation in the UK.

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Our latest insights

As longstanding supporters of the social housing sector, our experts have unique insights into the challenges and opportunities the sector is facing.