Busted? The phrase ‘state subsidised’ is a common description for social housing. The government partly funds social landlords in developing sub-market rent homes through the Affordable Homes Programme. But it’s not much funding, especially since George Osborne slashed the social housing budget by more than 50% to £4.4bn in 2010. Many social landlords are far more reliant on the markets than capital subsidy to build their homes. Housing association L&Q has plans to build 50,000 homes over the next ten years without any grant at all.
When tenants live in low-rent properties it means that the government has to shell out less on housing benefit – so in the long run, so perhaps perhaps building affordable housing is investment, not subsidy.