Prime minister Sir Kier Starmer has pledged to stick to his government’s 1.5m new homes target by the end of its parliamentary term despite growing doubts that it will meet its goal.
In a speech yesterday, Starmer set out his “plan for change”, which included six targets covering the economy, housebuilding, the health service, policing and pre-school education.
He promised to the building 1.5 million homes in England and fast-tracking planning decisions on at least 150 major infrastructure projects.
Some of the pledges, including to build 1.5 million homes, highlight the areas the government wants to prioritise in the coming years. But there will be clear challenges ahead.
The government’s planned reforms to the National Planning Policy Framework (NPPF) will not be sufficient to meet its housebuilding targets, according to the Centre for Cities.
According to the think tank, Labour will fall short of its aim to build 1.5m homes by the end of this parliament in 2029 by at least 388,000 homes.
Last year housebuilding fell by 5.6% to 221,070, the lowest level for eight years outside the pandemic, and Matthew Pennycook, the housing minister, has already said that the housebuilding target will be “more difficult than expected” to meet. Many of the experts think it is all but impossible.
Nathan Emerson, CEO of Propertymark, commented: “Propertymark welcomes the prime minister’s focus on building new homes, but there are concerns that they may miss this target by 2029. The UK government would have to build the equivalent of over 1,000 new homes a day to hit this target, which is the size of a typical housing estate each and every day between here and 2029.
“The UK government must ensure that they have the workforce and skills in place to meet such an ambitious aim, because without a sufficient supply of homes, prices are unlikely to stabilise and people may find it a challenge to take their first step onto the housing ladder.”
Craig Carson, managing director at Barratt West London, said: “The government has inherited a difficult environment from its predecessors. It has a challenge on its hands to even begin to tackle London’s housing shortage, with a target of 80,000 new homes per year in the capital alone. This is clearly an ambitious target but demonstrates a shared vision between government and housebuilders alike that we absolutely must build more homes.
“Not only does the Government need to introduce measures that keep the homebuying and selling market moving, it needs to support housebuilders from the very beginning. The National Planning Policy Framework and new towns funding are two immediate positive introductions from the Government. Housebuilding is clearly central to the Government’s plans, with a recognition of both the social benefits and economic growth potential by increasing the country’s housing output.
“There has also been much discussion around the elusive grey-belt and how this could unlock swathes of land, alongside reforms to the London Plan next year. I would like to see Labour define exactly what this is at both a Government and GLA level, and work with housebuilders on planning reforms to transform currently disused areas for the benefit of whole communities.”
Local authorities are already saying that they will not be able to meet the targets being imposed by the government.
Adrian Watts, chief executive at Croudace Homes, said: “We have suffered in the past from Nimbyism across the country, which has held back housing delivery. Given the stark change to a pro-housing government, it will take some time for Labour to implement significant changes. Whilst the noise so far has been positive, I expect limited progress to be made next year, as the delivery of these changes will not happen overnight.
“The proposed changes to the National Planning Policy Framework (NPPF) will help, but without sufficient resources and recruitment within Local Planning Authorities, progress will be too slow to dramatically shift the outlook of these departments.
“We also need Registered Social Landlords to be in a strong position to contract on S106 housing if delivery is to first be maintained and then increased alongside the rise in housing demand. Finally, with no support for first-time buyers, we will struggle to increase our housing stock and risk leaving a generation behind, stuck in the vicious cycle of renting.”
Simon Brown, CEO of Landmark Information Group, commented: “It is promising to see the government’s focus on planning reform as part of its Plan for Change, recognising its pivotal role in unlocking the economic potential of the UK.
“The commitment to delivering 1.5 million new homes and accelerating planning decisions on 150 major infrastructure projects is ambitious. However, systemic barriers—such as fragmented processes, overburdened professionals, and limited information-sharing—still impede progress. By leveraging data more effectively, we can identify demand hotspots, streamline development, and ensure homes are built in the right locations, supported by the necessary infrastructure to foster thriving communities.
Simon Vernon-Harcourt, Design & Planning Director at City & Country, remarked: “The Labour Party is making great strides in the right direction, and the potential opportunity for enhancement is huge. It will be a massive challenge to change the system given how under-resourced local planning authorities are, and how entrenched the ‘nimby’ culture is in the system.
So far, we have heard many soundbites about recruiting new planning officers, but unfortunately, the devil is in the details – something we are currently lacking.
There’s a very ambitious housing target above our heads, and to fulfil this, we need the policy of loosening the green belt delivered promptly.
This will enable the development of sustainable communities and help create new places for people to live, work, and play. I hope we will start to see a shift next year with the housing market from political point scoring toward tangible action.”
Chris Harris, operating officer at Dandara, added: “The government has positioned housebuilding as a key driver of economic recovery, signalling its commitment to boosting the economy – a goal in which housing plays a crucial role. The UK’s pressing need for new homes makes this focus both timely and essential.
“Labour’s proposed policy changes, particularly its plans to simplify and expedite the planning process through amendments to the NPPF, could present significant opportunities for SMEs like ours to increase housing delivery nationwide. However, it remains uncertain whether these commitments will translate into actionable outcomes.
“For buyers, the financial landscape remains challenging. Rising rents, higher mortgage rates, escalating energy costs, and the ongoing cost-of-living crisis are all barriers to homeownership, especially for first-time buyers. In the coming year, I hope to see the government take decisive action to address these issues and promote greater accessibility to homeownership.”
5 months in and still only talking, not building. Instead, the economy is tanking, and builders are failing.
A friend had paid a holding deposit on a new build, and when she went to view progress last week, found the large site with houses almost completed [including hers] and many half-built, but boarded off and a notice that the company was in administration.
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5 months in and still only talking, not building. Instead, the economy is tanking, and builders are failing.
A friend had paid a holding deposit on a new build, and when she went to view progress last week, found the large site with houses almost completed [including hers] and many half-built, but boarded off and a notice that the company was in administration.
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