Call to build more rented homes as tenants struggle to pay rent

Nearly two-thirds of workers living in private rented housing struggle to pay their rent, a poll by Shelter reveals.

Only 32% of workers said they could keep up with rent payments without difficulty, with 40% sometimes struggling and 23% constantly struggling.

Also, 3% say they are falling behind on payments.

Invest billions in social housing

The poll figures have been published by the Guardian and have fuelled calls from businesses, unions and charities for Chancellor Rachel Reeves to invest billions in social housing.

They argue that increased social housing supply would alleviate pressure on the private rented sector (PRS), driving down prices.

Twenty-three business leaders, including Ikea UK’s Peter Jelkeby and Unite’s Sharon Graham, signed a letter to Ms Reeves urging her to invest up to £11.5 billion annually to build 90,000 new social rented homes.

Chronic shortage of social housing

The letter, printed by The Guardian, states: “As businesses, trade unions and third sector organisations, we have come together to express our concern about the devastating impact the chronic shortage of social housing is having on our society, our businesses, and our workforce and productivity.

“Worryingly, polling for Shelter reveals that two-thirds of working private renters, 4,450,000 people, are falling behind or struggling to pay their rent, showing the housing emergency the government inherited is only getting worse.

“As we enter 2025, we must get serious about ending the housing emergency that is holding our country and our economy back. Together, we are asking you to use the forthcoming spending review to invest in building 90,000 social rent homes a year for 10 years.

“Social rented housing is the only genuinely affordable housing by design, as rents are tied to local incomes. What’s more, history and research both show that without major social housing investment and a major boost to council housebuilding, the government cannot deliver its election promise to build 1.5m homes.”

Pledge to build 1.5 million homes

Labour has pledged to build 1.5 million homes, including the loosening of planning rules.

However, campaigners emphasise the need for significant social housing investment to achieve this target.

A Shelter and National Housing Federation report found that building 90,000 social rented homes annually would cost £11.5 billion but generate returns within three years.

Ms Reeves will announce spending review allocations in June and while she has committed to raising social housing rents slightly above inflation, pressure is mounting to increase funding for the affordable homes programme.