Labour has committed to addressing the housing crisis by pledging to build 1.5 million homes during this parliamentary term, which includes plans to liberalize planning and facilitate land acquisition.

Government statistics show that 3% of workers are currently behind on rent, with an additional 5% having faced arrears in the past, further emphasizing the crisis.

The letter from business leaders stresses the detrimental effects of the social housing shortage on society and productivity, highlighting the urgent need for investment to tackle the housing emergency.

Reeves is expected to announce the budget for the affordable homes program in June, following a previous commitment of £11.5 billion, which has already been exhausted, although an additional £500 million was recently allocated.

Businesses, unions, and charities are calling on UK Chancellor Rachel Reeves to allocate substantial funding for social housing in the upcoming spending review, aiming to ease the strain on the private rental market.

A report from Shelter and the National Housing Federation highlights that to meet the target of 1.5 million homes, the UK needs to construct 90,000 social rented homes annually, requiring an investment of £11.5 billion.

A coalition of 23 executives, including leaders from Ikea UK and Shelter, has signed a letter urging Reeves to support the construction of these 90,000 new social rented homes each year.

Recent polling data from YouGov reveals that nearly two-thirds of workers in private rented housing in England are struggling to pay their rent, illustrating the severity of the ongoing housing crisis.

The survey indicates that only 32% of workers report no difficulties with rent payments, while 40% occasionally struggle and 23% consistently face challenges.

Housing Secretary Angela Rayner is advocating for a significant boost in affordable housing funding and has proposed measures to increase the social housing stock by restricting council home purchases.

As campaigners continue to push for billions in annual funding for social housing, they argue that councils and housing associations need this investment to meet Labour's housing targets.

To improve the financial situation of housing associations, Reeves plans to increase social housing rents by one percentage point above inflation annually for the next five years.