Report finds more investment is needed in affordable housing

Despite major investments, there is a long road to rebuilding the UK economy and levelling up, according to the latest Legal & General Rebuilding Britain Index (RBI).

The RBI measures the UK’s progress in levelling up every quarter, tracking a range of social and economic progress measures, including health and social care, education, environment, and energy, transport and digital.

For the second consecutive quarter, housing, jobs and economic prosperity continue to be the worst-performing measures, with access to quality affordable housing leading as the top priority for local communities.

The report found London, the South East, and the South West of England are falling significantly behind the rest of the UK on access to affordable housing, while Wales and the North East of England remain behind on jobs and economic prosperity.

Nigel Wilson, CEO at Legal & General, said: ‘Building Back Better is not going to happen overnight. And with ongoing restrictions on movement and social distancing it is perhaps no surprise to see the index has remained flat in Q2 2021.

‘GDP has improved, and several largescale investments have been announced, including Vauxhall’s announcement to produce electric vans in Ellesmere Port and Nissan committing to battery production in Sunderland. Legal & General has also made significant commitments this year, including a £1.5bn new innovation district in Manchester set to create thousands of jobs and a £1.5bn development in North Horsham, bringing forward thousands of low cost homes, alongside a new school for 1,600 pupils. But despite this we are seeing no change in community sentiment.

‘It is clear that the longer we wait in bringing forward further major schemes, the greater the risk of existing inequalities between and within our communities deepening further. As begin the long road to recovery, it is up to all businesses and government to step up and invest in the growth opportunities. As the economy continues to unlock, so will our ability to start to act on these opportunities.’

In the second quarter of 2021, the index has remained flat despite positive GDP growth and the announcement of several significant investment opportunities that will improve economic growth.

The jobs and economic prosperity measure remained low at 60/100, while the housing index score, which measures the ease of access to quality, affordable housing, dropped to 59/100.

The report also found that under a quarter of people across the UK agree that local investment is making a visible impact where it is needed.

In related news, the number of affordable homes in Manchester is expected to exceed 7,500 by 2025, with nearly 4,000 affordable homes completed or in the pipeline in the North and East of the city since 2016.

Photo by Emily Wang