The UK Government has announced new targets and £39 billion in funding for social and affordable housing under the Social and Affordable Home Programme, aiming to help build 1.5 million homes and deliver the largest increase in such housing in a generation.
Social housing is not just a social safety net—it is a driver of national development. From reducing homelessness to supporting economic participation and health, its impact is far-reaching. Social housing plays a pivotal role in inclusive development, addressing critical issues such as poverty, inequality, and urban sustainability. In the UK, where over 1.33 million households were on local authority housing registers, as of March 2024, the role of social housing in meeting development targets is more vital than ever. But delivering these outcomes effectively requires not only investment and policy but also strong governance—where internal audit plays a crucial and critical role, ensuring resources are used wisely, risks are managed and outcomes achieved.
Social Housing as a Catalyst for Growth and Change
Social housing contributes to development targets in several key ways across economic, social, and environmental dimensions including:
Accelerating Housing Supply
Social housing developments add to the overall housing stock, helping meet national and local housing targets. Often developed on brownfield or underused land, social housing can make otherwise unviable sites deliverable.
- Social Inclusion
Social housing directly reduces homelessness and housing insecurity. In 2023/24, 27% of new social lettings in England were allocated to statutorily homeless households, up from 23% the previous year. Additionally, 14% of new tenants came from temporary accommodation, highlighting the sector’s role in providing stability. By providing affordable housing to low-income families, social housing reduces homelessness and housing insecurity, enabling individuals to focus on employment, education and health. - Economic Growth and Job Creation
Investment in housing infrastructure stimulates local economies through construction jobs, supply chain demand and increased consumer spend. While specific job creation figures vary, the UK construction industry—heavily influenced by housing investment—employs over 2.7 million people. Moreover, 38% of lead tenants in new General Needs lettings in 2023/24 were employed showing how housing stability supports workforce participation. - Urban Planning and Environmental Sustainability
Well-planned social housing projects can promote energy efficiency and support climate resilience through green building practices. Social housing developments are increasingly aligned with sustainability goals. Many new builds incorporate energy-efficient designs and renewable technologies, contributing to the UK’s net-zero targets. Though specific 2024 figures are pending, previous years have shown that social housing stock tends to outperform private rentals in energy efficiency ratings. - Health and Well-being
Access to safe, stable housing is directly linked to improved physical and mental health outcomes, reducing public health costs and enhancing quality of life. - Education and Youth Development
While national education data is not disaggregated by housing type, numerous studies show that frequent moves and housing instability—common in the private rental sector—negatively impact school attendance and performance. Social housing offers the stability needed for long-term educational success.
Strengthening Accountability – Experience the TIAA difference
While the benefits of social housing are clear, achieving these outcomes requires effective oversight, risk management, and performance monitoring. This is where internal audit plays a vital role and included below are some considerations and how TIAA Ltd can support the sector;
- Ensuring Compliance and Accountability – Internal auditors help ensure that housing programs comply with legal, regulatory and funding requirements. They assess whether funds are used appropriately and whether procurement and contracting processes are transparent and fair.
- Risk Management and Fraud Prevention – With large budgets and multiple stakeholders, social housing is vulnerable to fraud and mismanagement. Internal auditors assess financial controls, detect irregularities and recommend safeguards to protect public funds.
- Performance Monitoring and Value for Money – Internal auditors evaluate whether housing initiatives are meeting their intended objectives efficiently and effectively. They provide insights into cost-effectiveness, project timelines, and quality standards, helping to optimize resource allocation. Auditors evaluate whether housing programs deliver on their promises. For example, they might assess whether new builds meet energy efficiency standards or whether tenant satisfaction targets are achieved.
- Strategic Advisory and Continuous Improvement – Beyond traditional assurance roles, modern internal audit functions act as strategic advisors. They offer recommendations for process improvements, innovation and alignment with broader development strategies.
- Stakeholder Confidence and Transparency – By providing independent and objective assessments, internal audit enhances stakeholder trust—whether from government bodies, donors, or the public—ensuring that social housing programs are credible and impactful.
Conclusion
Social housing is a catalyst for inclusive and sustainable development. However, to fully realize its potential, strong governance and oversight are essential. Internal audit serves as a critical enabler, ensuring that social housing initiatives are not only well-intentioned but also well-executed.
As the UK pursues ambitious development targets, the synergy between social housing and internal audit will be key to delivering lasting, inclusive progress.