Private rentals in almost half of England unaffordable to new NHS nurses

Shelter warns of impact to economy as key workers priced out due to lack of genuinely affordable homes

New analysis from Shelter reveals how private renting is unaffordable to key workers in a large proportion of the country - finding that in almost half (45%) of local authorities in England, renting in the private sector is unaffordable for newly qualified nurses.

The charity’s analysis, which compares government data on private and social rents with key worker salaries, found that:

• Overwhelmingly, London and the South East of England are worst affected, with average rent for a one bed home unaffordable to newly qualified nurses in 93% of local authorities.

• Many key workers are being priced out of their communities: private rented homes are unaffordable in 43% of England for new teachers and in 69% for a healthcare assistant in the NHS.

• In a stark contrast, social rented homes are affordable in 100% of the country for NHS key workers and teachers.

With private rents hitting record highs and a dire shortage of social housing available, additional YouGov polling for Shelter shows the immense financial strain that key workers who are renting privately face:

• Nearly two thirds (64% or 1.5 million) are struggling or behind on their rent.

• Nearly half (47%, 1.1 million) are just one pay cheque away from homelessness.

• One in five (21%) have skipped meals or cut back on food in order to pay rent in the last month.

Emily*, 58, is a nurse living in East London. She has been a nurse for over ten years. She privately rents a three-bedroom flat with her son (27), also an NHS worker who pays half the rent, and daughter (19). The rent is £2300 per month and set to rise to £2500 in May. She’s already struggling with her housing costs, some weeks having to pick up extra shifts just to cover rent.

Emily said: “Half of my salary already goes towards the rent, and it’s increasing soon. I don’t know what I’m going to do. We would love to find somewhere cheaper, but I can’t move out of my area because I need to be able to get to the hospital where I work. I take extra shifts to get more money, but it all goes to paying the rent. I’m not able to save anything, and I have to take out loans to cover costs like food and bills. I’m basically putting myself in debt, but I don’t have a choice.

“I can barely afford my bills and if I need to buy something extra, like a new pair of shoes, I just can’t. My work is stressful so it’s important for me to get away sometimes and relax my mind. In the past we’ve gone away for a bit during the summer, for example to the British seaside, but I simply can’t afford to do that right now.

“A social home would make a world of difference. I often find myself wishing the council will call me saying there's one available. I wouldn't have to worry every day about having to leave my area, or my finances because all my money wouldn’t go towards paying rent and bills.”

Unlike the instability of private renting, social rent homes offer secure long-term tenancies with rents set at local incomes. Yet for decades, successive governments have built far too few social homes, forcing key workers into unaffordable private rentals or out of their communities entirely.

Shelter is urging the government to use the Spending Review in June to make a significant investment in social housing that will not only deliver long-term savings and economic stability, but end homelessness for good - by building 90,000 social rent homes a year for ten years.

Last year alone the government spent over £11.7bn on housing benefit for private renters and £2.3bn on temporary accommodation - funding that could be better used to build social homes. A large-scale investment in social housing would:

• Reduce government spending on housing benefit by £4.5bn in the long-term by providing genuinely affordable homes instead of subsidising high private rents. (CEBR report for Shelter/NHF, 2024)

• Create jobs and stimulate the economy, with investment in 90,000 social homes directly supporting nearly 140,000 jobs and £3.8bn in income from employment taxes. (CEBR report for Shelter/NHF, 2024)

• Ease recruitment and retention challenges in essential services, addressing staffing shortages in the NHS, schools, and emergency services. The region in England with the highest number of nurse vacancies is London, where private rents are least affordable.

Polly Neate, Chief Executive of Shelter said: “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.”

ENDS