Build 150,000 social homes

Policy baseline

The Green manifesto proposes 150,000 social homes annually. The cost depends on grant rates, land, borrowing and local capacity.

• Targets social renters and councils.
• Ending Right to Buy preserves stock.
• Construction and land costs dominate.

Core trade-offs

The direct beneficiaries are low-income renters and councils. The costs fall mainly on taxpayers and landowners. The main economic question is capacity limits can delay completions.

• Low-income renters and councils gain most directly.
• Costs fall mainly on taxpayers and landowners.
• Key risk: capacity limits can delay completions.

Fiscal impact by 2028-29

+GBP 8.0bn to +GBP 40.0bn. Central estimate: +GBP 18.0bn.

• Positive numbers mean net fiscal cost; negative numbers mean Exchequer savings.
• Main channel is the scored tax, spending or delivery change.
• Offsets depend on tax receipts, behaviour and pass-through.
• Range reflects uncertain implementation and economic response.
• This is not an official costing.

Economic impact by 2028-29

• Jobs: Construction jobs rise if planning, finance and skills constraints are resolved.
• Wages: Construction wages may rise in shortages; renters and buyers gain from greater supply.
• Prices: More supply should reduce price pressure; infrastructure costs may be partly passed on.
• GDP / productivity: Likely positive if homes are additional and located near productive labour markets.

Assessment

This is a real trade-off, not a free gain. Low-income renters and councils benefit, while taxpayers and landowners bear most costs. Overall output depends on behaviour, capacity and pass-through.

Confidence: Medium-low. Higher on the policy target and fiscal channel; lower on behaviour, pass-through and economy-wide effects.

Main risks

• Build-out risk: Planning approval does not guarantee completions if demand, finance or infrastructure are weak.
• Infrastructure pressure: New homes need transport, schools, health and utilities funding.
• Local resistance: Legal and political constraints can delay delivery.

Safeguards

• Fund planning teams and infrastructure upfront.
• Track completions, not permissions.
• Target high-demand labour-market areas first.

Academic evidence

UK government evidence

Sources

• PolicyLens illustrative scenario methodology for build 150,000 social homes Internal - PolicyLens, 2026
• The Economic Implications of Housing Supply Academic article - Glaeser and Gyourko, Journal of Economic Perspectives, 2018
• Green Party manifesto: a reaction Think tank analysis - Institute for Fiscal Studies, 2024
• Green Party manifesto summary Manifesto summary - Local Government Association, 2024
• The Impact of Supply Constraints on House Prices Academic article - Hilber and Vermeulen, Economic Journal, 2016
• Housing supply indicators, UK Official statistics - Office for National Statistics, 2025
• Manifesto for a Fairer, Greener Country Party policy source - Green Party of England and Wales, 2024

Other Green policies

• Raise the minimum wage to £15
• Index public-sector pay to inflation
• Add public-pay restoration premiums
• Raise low-paid public-sector wages
• Cap organisation pay ratios at 10:1
• Protect pay in transition schemes
• Create a single worker status
• Equal terms for outsourced workers