Renting a one-bed flat is unaffordable across half of England for new nurses, teachers and NHS healthcare assistants, claims campaigning charity Shelter.

In an open letter to government by 40 economists, coordinated by Shelter, Chancellor Rachel Reeves is asked to prioritise spending on affordable housing in next week’s Spring Statement.

Rent for an average one-bed property would take over 30% of gross pay for a newly qualified nurse in 45% of English local authorities, 43% for teachers and 69% for healthcare assistants, says the charity. 

The government defines ‘unaffordable’ as spending over 30% of gross pay on housing.

“History shows you will not end homelessness or deliver new homes on the scale you have promised solely through planning reforms and the private market,” the signatories write.

“Government must prioritise investment in social homes and capitalise on the economic benefits this would bring.”

Industry figures show some 62,000 affordable homes were completed in the year to March. 

But it’s expected that housing starts will decline in the coming years, with a particular crunch in London, amid a wider housebuilding slowdown and growing financial pressures on housing associations.  

The number of social homes has been in decline as demolitions and Right to Buy sales outstrip construction. 

Polly Neate, Chief Executive of Shelter says: “A strong economy relies on essential workers having stable, genuinely affordable homes within their communities. But without enough social housing, nurses, teachers, and other key workers are being priced out, making it harder for hospitals, schools, and local businesses to find and keep staff. 

“For decades we’ve lost more social homes than we’ve built, while sinking money into temporary solutions and so-called “affordable homes” that aren’t truly affordable for people on lower incomes. As a result, families are pushed into extortionate and unstable private renting, or into homelessness, driving them out of their local areas away from their jobs, schools and support networks. 

“Social homes are vital for the economy and the only lasting solution to the housing emergency, but there’s nowhere near enough of them. The government must use the June Spending Review to invest in 90,000 social homes a year for ten years – ambitious investment would boost jobs, give people security and end homelessness for good.” 

Reeves is under pressure to rein in government spending and is expected to trim proposed long-term budgets for Whitehall departments next week. 

But according to the Financial Times she is facing a push back by Housing Secretary Angela Rayner, to ensure enough funding for the government’s housebuilding agenda. 

The Ministry of Housing, Communities and Local Government has told the FT that it had “inherited the worst housing crisis in living memory with rent levels unaffordable for far too many, including public sector workers”.