In its report, ‘Improving homes, improving lives: using competition for better social housing’, the UK’s business group said that £1.5bn could be saved in England alone by allowing local councils and housing associations to choose the best provider of services, whether they are from the private, voluntary or charity sectors.
The report, launched at the Inside Government Social Housing Conference in London, features in-depth case studies of where the private sector is already providing high-quality social housing.
It outlines the benefits of their involvement, which include better property maintenance and related social and economic improvements such as higher GCSE pass rates.
Susan Anderson, CBI director of public services & skills, said: “Our report shows the benefits that can be achieved from introducing private providers into the social housing market. There is a clear link between high quality housing and good health and better educational attainment.
“At present only one in 80 homes is currently managed by the private sector. The Government must create a competitive market for social housing management services and allow longer contracts to encourage more providers to enter the market.”
She added: “With no requirement to go to the market to see if another provider can deliver better services for the same or lower cost, many housing managers simply opt for the status quo. Without competition, tenants and taxpayers may be losing out.”
