Labour won’t hit housing target – Savills
10 months ago | 4 comments
Labour set to miss housing target deadline by eight years
12:01 AM, 3rd July 2025, 10 months ago
9
The Labour government is on course to miss its flagship manifesto commitment to deliver 1.5 million new homes in England by an astonishing eight years, research reveals.
The study by West One Loans looked at Labour’s 2024 General Election commitment when it campaigned on a bold pledge to build the homes within five years.
That would require an annual average of 370,000 new homes being built.
Industry experts said the target was highly ambitious, if not unachievable.
Now, after nearly a year in power, evidence suggests Labour is significantly behind schedule.
Labour’s ambitious housing target
The lender’s co-head of short-term finance, Thomas Cantor, said: “The Labour government was quick to hang its hat on an ambitious target with respect to housing delivery and, with previous governments having consistently fallen short, this was understandably met with a great degree of scepticism.
“Of course, it is still early days, and Labour may well be in the process of laying the initial groundwork required to eventually pave the way for an explosion in new home delivery.
“But whilst it’s possible that they need time to overhaul planning rules, cut red tape and prepare and incentivise the nation’s housebuilders to increase output, it’s already looking as though the task of delivering what was promised is running away from them.”
He added: “This will come as little surprise to the industry who have been consistently calling for further market stimulation via government intervention of monetary policy.
“We simply haven’t seen enough done in this respect and given the lack of movement with respect to interest rates of late, the worry is that we aren’t unlocking the full potential of development activity at a time when it’s needed most.”
Take 12 years to build
The research does highlight some progress, noting that 86,000 new homes began construction in the three quarters since Labour took office in Q3 2024.
This marks a rise from the 68,080 starts recorded in the previous three quarters (Q4 2023 – Q2 2024).
However, the pace remains insufficient to meet the manifesto goal, the firm says.
Labour’s target refers to ‘net additions’ which includes new builds, property conversions and changes in building use.
Historical trends indicate that 89.8% of these additions stem from new-build developments, meaning that around 1.35 million of the 1.5 million homes must come from new construction.
At the current rate of 28,667 new build starts per quarter, or 114,667 annually, it would take nearly 12 years to achieve this figure, far exceeding the promised five-year timeline.
Tags:
government housing policy, housing shortage, Labour housing target, labour manifesto, new build homes, Property development, UK construction, UK Housing Crisis
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Previous Article
Property investment loses its shine as stocks surge - studyRelated Articles
The UK’s housing market faces recovery challenges
11 months ago
Labour cuts red tape in planning reforms but industry warns more reforms are needed
11 months ago | 2 comments
Member Since December 2023 - Comments: 1581
9:20 AM, 3rd July 2025, About 10 months ago
House builders build houses that they can sell for profit.
Landlords exiting the sector adds more homes to the pool of homes available to buy. This leads to less demand for new build homes.
Labour, in their wisdom, increased SDLT for landlords and those wishing to move. This further erodes the possibility of Labour achieving their house building pipe dream.
Houses are too expensive. The numbers don’t stack up except in the some areas of the North. EPC and RRB changes will ensure even fewer landlords will be buying.
Member Since January 2015 - Comments: 1442 - Articles: 1
10:18 AM, 3rd July 2025, About 10 months ago
Only 8 years?
Member Since May 2015 - Comments: 2197 - Articles: 2
10:32 AM, 3rd July 2025, About 10 months ago
It’s not surprising, Labour made an unachievable promise.
Member Since September 2018 - Comments: 3515 - Articles: 5
10:42 AM, 3rd July 2025, About 10 months ago
hahahah
they have lost the plot…or should that be, literally, they have no plots?
Member Since March 2022 - Comments: 364
11:32 AM, 3rd July 2025, About 10 months ago
Reply to the comment left by Cider Drinker at 03/07/2025 – 09:20
I agree with this comment entirely. Developers want to decide for themselves what and where to build. Affordable homes do not fit their business model. You cannot blame them, they are in the game to make a profit after all. So we need bodies that are willing to build affordable homes for sale and rent who are happy with a minimal profit this really comes down to the Government generally and Councils specifically. Trouble is most Councils couldn’t run a bath let alone a building project.
Member Since February 2018 - Comments: 627
12:08 PM, 3rd July 2025, About 10 months ago
We can barely hang on to scaffolders for our multi year cladding related project, other trades are also in short supply, where are the tradesmen supposed to come from for the government’s ambitious, unrealistic, expectations?
Member Since April 2020 - Comments: 78 - Articles: 51
12:13 PM, 3rd July 2025, About 10 months ago
Reply to the comment left by northern landlord at 03/07/2025 – 11:32I hope you don’t mind but we may have to steal this
“ Trouble is most Councils couldn’t run a bath let alone a building project.”
😂😂😂😂😂😂
Member Since September 2018 - Comments: 3515 - Articles: 5
1:22 PM, 3rd July 2025, About 10 months ago
Reply to the comment left by moneymanager at 03/07/2025 – 12:08
via rubber boats?
Member Since January 2015 - Comments: 1442 - Articles: 1
8:17 AM, 5th July 2025, About 10 months ago
Reply to the comment left by Reluctant Landlord at 03/07/2025 – 10:42
Nor enough brickies, hod carriers, chippies, sparks etc etc