[Deep dive]: The monetised social value of ‘Improved Housing’ 

Housing is more than just four walls and a roof—it’s the foundation of our daily lives and a cornerstone of community well-being. Quality housing is essential for meeting basic human needs, promoting health and well-being, fostering community stability, supporting educational and economic opportunities, and enhancing overall quality of life.

In this blog, we’ll explore the profound impact of “improved housing” on wellbeing and its measurable social value, using insights from MeasureUp and other key studies.

Affordable housing in the UK

The drive to improve housing in the UK is a strategic initiative that touches every aspect of national development. Modernising the housing stock not only fuels economic growth and job creation—from construction and engineering to design and technology—but also enhances public health and helps meet environmental targets, offering benefits for both citizens and policymakers.

In the UK, housing-related policies primarily focus on increasing the supply of affordable housing through programs like the Affordable Homes Programme. This is understandable, considering that, according to the Office for National Statistics (ONS), in 2023, a full-time employee in England would need around 8.3 times their annual salary to buy a home, compared with 6.1 times in Wales. The increase in housing prices in relation to comparative salary growth is a well-recognised issue across the UK with particularly younger and first time buyers being kept out of the housing market.

The recent Budget underscores the government’s commitment by significantly boosting housing investment (source). This initiative aims to trigger the largest surge in social and affordable housebuilding in a generation, with plans to build 1.5 million homes over this Parliament and address homelessness head-on.

To further increase housing supply, the government is set to invest £5 billion in 2025-26—a £1 billion increase from the previous year with an additional £500 million for the Affordable Homes Programme.

Defining a decent home

Whilst the focus on access to affordable homes in the UK is understandable, the quality of those homes will also have a huge impact on individual, family, and community wellbeing.

A key objective of housing policies in the UK is to tackle poor housing by enforcing standards through the Decent Homes Standard and strengthening legal protections for tenants, especially in the private rented sector.

For a dwelling to be deemed ‘decent’ under the Decent Homes Standard, it must:

• Meet statutory minimum health and safety standards
• Be in a reasonable state of repair
• Offer reasonably modern facilities and services
• Provide a reasonable degree of thermal comfort

In 2023, 3.8 million households (15%) in England lived in homes that did not meet the Decent Homes Standard.

According to the English Housing Survey (source: Chapters for English Housing Survey 2023 to 2024: Headline findings on housing quality and energy efficiency)

• In 2023, damp was most common in the private rented sector (9%), followed by the social rented sector (7%) and the owner-occupied sector (4%).
• Within the social rented sector, local authority dwellings were more likely to experience serious condensation (7%) compared to housing association properties (4%).
• Over the past decade, the proportion of homes in the highest energy efficiency bands (A to C) increased from 23% to 52%, while those in the lowest bands (E to G) declined from 26% to 9%.

Recent initiatives, as part of the “Levelling Up” agenda, aim to reduce the number of non-decent rented homes by half by 2030.

The social impact of improved housing and wellbeing

Better housing means healthier living. Renovations that address issues like poor ventilation, mould, and outdated heating or cooling systems can reduce health risks and create a more comfortable living environment.

Accredited official statistics of English Housing Survey 2022 to 2023: housing quality and condition by the Ministry of Housing, Communities & Local Government examines the self-reported health and well-being of households living in non-decent homes. The findings showed those in non-decent homes reported a lower average life satisfaction score (7.2) compared to those in decent homes (7.5), and lower happiness levels (7.3) than those in decent homes (7.5). For those living with damp there were also higher average anxiety scores (3.5) compared to those without damp (3.1).

Improved housing is more than just a policy priority—it’s a strategic investment in the nation’s future. Improving housing today paves the way for a healthier, more sustainable, and economically vibrant tomorrow.

The fiscal and social value of improved housing

MeasureUp value WWL5.1 Improved Housing represents the fiscal and social benefit to society and the NHS for each hazard improved per home. This value is derived from a report by the Building Research Establishment Limited (BRE), which calculates NHS savings by applying first-year treatment costs for each category 1 hazard using the BRE COPH algorithm, as detailed in The Full Cost of Poor Housing.

The report outlines 23 category 1 hazards and estimates the total savings for both the NHS and society. By averaging these savings, the value is determined to be £2,900 in 2023 prices for Bronze level.

At the Silver level, you can calculate a more accurate value of the savings to NHS and savings to society by considering realistically what hazards you will be able to mitigate.

Case example

Consider social housing properties which had struggled with persistent damp—a Category 1 hazard known to exacerbate respiratory conditions and contribute to poor indoor air quality. The damp not only affected the family’s health but also imposed broader costs on the NHS in terms of first-year treatment expenses.

After a comprehensive assessment, local housing authorities initiated a remediation program. The improvements included:

• Upgrading insulation and installing a new ventilation system.
• Sealing leaks and repairing faulty plumbing to eliminate moisture ingress.
• Introducing damp-resistant finishes to further mitigate the issue.

Following these improvements, families experienced noticeable enhancements in their living conditions. The homes became warmer and drier, significantly reducing the incidence of respiratory issues. As a direct consequence:

• The need for frequent GP visits and hospital treatments related to damp-induced conditions declined.
• The overall well-being and comfort of the residents improved, contributing to a better quality of life.

Fiscal and Social Value:

According to the BRE COPH algorithm, the remediation of the dampness resulted in estimated savings to the NHS and society amounting to approximately £2,160 in 2023 prices. This figure represents:

• Fiscal Savings: £618
• Social Savings: £1,542

If we assume that there are 10 houses which had struggled with persistent dampness and improved after the local housing authorities initiated a remediation program.

• Total Fiscal Savings: £6,180
• Total Social Savings: £15,420
• Total Monetised Value for 10 House is £21,600.

Conclusion

Investing in improved housing is not merely a matter of enhancing living conditions; it’s a strategic move that yields substantial fiscal and social benefits. By addressing hazards such as dampness, we can alleviate the burden on the NHS, enhance residents’ quality of life, and foster healthier, more resilient communities. The data underscores the importance of continued investment in housing improvements as a catalyst for national well-being and economic prosperity.

Learn more about the ‘Improved Housing’ MeasureUp value here: https://measure-up.org/mu-outcomes/improved-housing/