The new Labour government seems determined to meet its ambitious goals when it comes to housebuilding, although it is not yet clear how they will succeed.

The Tories failed to hit their housebuilding target of 300,000 homes a year when in government.

Government data shows that housing supply in England increased by 234,400 net additional dwellings in 2022-23 – just 70 homes shy of the number recorded in 2021-22.

But the total additional homes remains way down from the pre-Covid high of 248,590 in 2019-20 and, crucially, the Tories’ 2019 manifesto promise of building 300,000 homes a year.

Angela Rayner, when shadow housing secretary, was keen to pan the Conservatives for failing to hit their housing target each and every year since they set it, insisting that a Labour government “will deliver the new homes our country desperately needs”.

Sir Keir Starmer’s administration wants to build 1.5 million new homes over the next five years. For some areas, the proposed mandatory targets (which as they stand total 370,000 a year) represent a significant rise on existing requirements and building levels.

Labour’s ambitious housing targets could boost market value by £161.6bn across England in five years, according to London-based agency Benham and Reeves,

The estate agency looked at the increase in housing delivery proposed by Labour via reforms to the National Planning and Policy Framework, where across the nation is set to see the biggest boost in new housing stock if this proposal is met, and the potential added value it could bring to the property market*.

The research shows that across England the proposed increase in new homes delivered from 305,223 per year to 371,541 would boost housing supply by 21%.

Over the last five years, the average new-build home has increased by an average of 3.5% per year in value and Benham and Reeves estimates that over the next five years, £161.6bn worth of property could reach the market should Labour deliver on its promise of 371,541 new homes per year.

The North East is set to see the largest boost to housing stock should Labour come good on its promise, with the proposed method estimated to increase the level of new homes reaching the market by 99%.

London is the only region expected to see a reduction in new housing delivery under new proposals, with the number of new homes built each year forecast to fall by 18%.

Despite this reduction, London is still expected to see by far the most value added to the property market via the construction of new homes, with an estimated boost of £46bn over the next five years.

Redcar and Cleveland is the local authority set to see the biggest boost to housing stock under Labour’s new housing delivery proposal. The area is set to see the level of new homes climb to 642 per year – an increase of 1,338% versus the 45 per year delivered via the current method.

Burnley (+625%), Westmorland and Furness (531%) and Hyndburn (528%) are also expected to see an increase of over 500% in the number of new homes delivered under new Labour plans.

When it comes to the highest market value of potential new stock delivered over the next five years, Kensington and Chelsea sits top. Not only is the borough set to see a 209% increase in the number of new homes delivered each year under new proposals, but over five years, this new housing stock is estimated to bring an additional £5.1bn in added value.

Marc von Grundherr, director of Benham and Reeves, commented:

“Our new Labour government has been ambitious from the get go when it comes to the proposed shake up of housing delivery targets and not only could we see a very notable boost to the number of new homes reaching the market, but over the next five years these new homes would also bring a sizable boost to the overall value of the property market.

“Of course, some areas are set to benefit to a far greater extent than others and it’s interesting to see that, under new proposals, London is the only region expected to see a decline in housing delivery. This is despite the fact that it’s probably one of the worst hit areas with respect to a shortage of housing to meet demand.

“It’s also important to note that housing delivery has sat well below any government target set for quite some time now and so whilst the new targets set out by Labour are admirable, it means very little if they aren’t honoured.”