Model Dwellings Company

Model Dwellings Companies (MDCs) were a group of private companies in Victorian Britain that sought to improve the housing conditions of the working classes by building new homes for them, at the same time receiving a competitive rate of return on any investment. The principle of philanthropic intention with capitalist return was given the label "five per cent philanthropy".

The precursor to the aims of MDCs was the work of Edwin Chadwick and others in exposing the sanitary conditions of slums in large metropolitan areas. Once Chadwick's reforms had been implemented poverty remained rife in the overcrowded inner cities, and reformers had to look elsewhere for the solution to the problems of the working class. The publication of Engels' The Condition of the Working Class in England in 1844 and The Communist Manifesto, as well as fear of further uprisings such as that of the Chartists in 1848, increased concern for the welfare of the working class amongst the middle and upper classes.

Out of this environment, various societies and companies were formed to meet the housing needs of the working classes. Improved accommodation was seen as a way of ameliorating overcrowding, as well as the moral and sanitary problems resulting from that. The movement started in a small way in London, with the Metropolitan Association for Improving the Dwellings of the Industrious Classes and Society for Improving the Condition of the Labouring Classes finding difficulty in raising sufficient capital to build commercially viable projects. Support from public figures and demonstrations at the Great Exhibition all improved public awareness, if not raising investment.

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