Social housing must be treated as critical national infrastructure to unlock billions in vital investment, urges Ian McDermott, chair of Peabody and incoming leader of the G15 group of major housing associations in London. McDermott is calling on the government to reclassify social housing alongside roads, energy, and health services—arguing this shift would enable long-term investment essential for addressing the UK’s worsening housing crisis.
Currently, the majority of government spending in the sector is funneled into subsidies and temporary housing, with very little directed toward permanent construction. McDermott warns that this backwards approach must change. “Social housing is not just a cost. It’s an asset—core to a productive, thriving society,” he said. By treating it as critical infrastructure, future investment could be exempt from traditional debt calculations, providing a transformative opportunity.
This urgent call comes as leading housing associations report unprecedented pressure on the system, with London at the epicenter of the crisis. More than double the population of Cambridge now sits on the capital’s housing waiting list. Meanwhile, temporary housing is costing London councils nearly £4 million daily, while years of government policy changes have drained billions from the sector.
The economic and social case for change is clear. Experts estimate that building 90,000 new social homes annually—at a cost of £11.8 billion—would create 140,000 jobs and pay for itself within three years. “We own land. We have the skills. We can deliver. But we need the government to back us,” McDermott stressed.
With a spending review approaching and pressure mounting, housing advocates across the UK are calling on ministers to act. For a stable, productive nation, McDermott argues, secure and dignified housing must be seen as essential—not optional.
