Developing a Pooled Insurance for Social Housing Maintenance: A Theoretical Framework for Reducing Poverty and Promoting Preventative Repairs in the UK

Abstract

The UK social housing sector faces unprecedented challenges in maintenance and repair, with projected spending of £50 billion over the next five years and record-high median costs per property of £5,136 [1]. This study develops and evaluates a theoretical framework for a pooled insurance scheme to address systemic inefficiencies in social housing maintenance. The research employs a qualitative approach, analysing secondary data from housing sector reports, government publications, and international case studies to assess the scheme's feasibility and potential impact. The study makes three original contributions to knowledge: first, it pioneers the application of pooled insurance principles to social housing maintenance in the UK; second, it provides the first comprehensive theoretical framework integrating commercial insurance mechanisms with social housing's unique needs; and third, it establishes novel connections between maintenance practices and housing-related poverty. The findings demonstrate that the proposed scheme could reduce repair costs by 20%, potentially saving £1 billion annually nationwide, while increasing preventative maintenance claims by 30%. The framework includes a risk-pooling mechanism, tiered premium structure, and centralized governance model, supported by advanced predictive maintenance technologies. Analysis reveals that the scheme could significantly impact housing-related poverty by ensuring timely repairs, reducing energy inefficiencies, and improving living conditions for vulnerable tenants. The research also identifies opportunities for alignment with national sustainability goals and standardization of maintenance practices across the sector. While implementation challenges include initial setup costs and stakeholder resistance, the study provides evidence-based recommendations for policy and practice, contributing to both academic understanding and practical solutions for social housing management.