Labour's 1.5m homes pledge stalled

- Labour’s 1.5 million homes pledge is slipping, with industry and fact-checkers saying England is building well below the pace needed by 2029. - Official and industry data show 208,600 net additional dwellings in 2024/25, while planning approvals hit a decade low and more than 100,000 homes stalled. - Ministers say planning reforms could lift output, but watchdogs still see only about 1.3 million homes under current measures. (gov.uk)

Labour’s promise to add 1.5 million homes in England by the next election is off pace, with current delivery running below the level needed. (fullfact.org) (gov.uk) The target means roughly 300,000 net additional dwellings a year over five years. Official figures show 208,600 homes were added to England’s stock in 2024/25, down from 221,410 a year earlier. (fullfact.org) The government says its December 2024 planning overhaul set mandatory local housing targets totaling 370,000 homes a year and put £100 million into planning capacity, including 300 extra planning officers. (gov.uk) Ministers also point to the Office for Budget Responsibility’s March 26, 2025 forecast. The Treasury said the watchdog expected planning reforms to add 170,000 homes by 2029/30 and bring total delivery to about 1.3 million, still short of 1.5 million on existing policies alone. (gov.uk) That gap is why the argument has shifted from headline targets to the mechanics of getting sites moving. Builders say the problem is not one blockage but several: planning delays, weak buyer affordability, shortages in affordable-housing partners, and utility and environmental constraints. (hbf.co.uk) Planning is one clear pressure point. The Home Builders Federation said just 39,170 homes were approved in England in the first quarter of 2025, down 55% from the previous quarter and 32% from a year earlier. (hbf.co.uk) Even where permissions exist, projects are getting stuck later in the process. The Home Builders Federation said more than 100,000 private homes and at least 17,000 affordable homes were stalled because registered providers were not bidding for Section 106 affordable units. (hbf.co.uk) Material costs are no longer rising at the double-digit rates seen after the pandemic, but they are still moving up. Government building-material statistics showed annual price inflation for new housing materials at 3.4% in February 2026. (gov.uk) The official measure matters here. After months of confusion over starts, completions and gross building, the government confirmed the pledge refers to 1.5 million net additional dwellings in England, not across the whole United Kingdom. (fullfact.org) That leaves Labour defending a target that remains politically central but numerically difficult. The government says further measures not yet counted by the Office for Budget Responsibility will close the gap; outside trackers still rate the pledge as off track. (gov.uk) (fullfact.org)

Get your own daily briefing

Scout delivers personalized news, insights, and conversations tailored to your role and industry.

Download on the App Store

Shared from Scout - Be the smartest in the room.