The government has acknowledged that its ambition to deliver 1.5 million new homes in England before the next general election is now facing a significant challenge.
Housing Secretary Angela Rayner said there was only a “slim chance” of meeting the target, although she insisted that ministers had not abandoned the commitment.
Speaking to the BBC, Rayner described the 1.5 million figure as a “stretch target”, pointing to rising construction costs and wider economic pressures, including the impact of the Iran war, as factors making delivery more difficult.
“It’s a slim chance, but I’m definitely not giving it up,” she said.
Her comments represent a notable change in tone from the government’s earlier commitment to its housing target, which has been a central part of Labour’s manifesto.
300,000 Homes a Year Needed
Meeting the 1.5 million target over the course of the current parliament would require England to deliver an average of roughly 300,000 additional homes each year.
The government has previously set out an ambition to support housing delivery at a rate above 300,000 homes annually. However, current figures suggest that the pace of construction remains some way below what would be needed.
Data covering the 12 months to June 2026 shows that developers registered 203,000 Energy Performance Certificates (EPCs) for new homes in England.
Although this was 3% higher than the previous year, the total remains significantly below the annual level required to reach the government’s overall target.
Separate figures from the government estimate that around 199,500 net additional homes were delivered during 2025/26. This was down from approximately 208,600 in 2024/25.
Since the beginning of the current parliament in July 2024, England has added an estimated 392,400 net additional homes up to 14 June 2026.
Housebuilders Still Face Major Obstacles
The latest figures highlight why housebuilders and industry representatives have questioned whether the 1.5 million target can realistically be achieved.
The government has introduced planning reforms intended to encourage more development, including changes affecting parts of the green belt.
However, developers continue to contend with higher construction and borrowing costs, difficult project economics and affordability concerns among prospective buyers.
These pressures can make developments harder to bring forward, particularly when the cost of building new homes rises faster than what buyers can reasonably afford to pay.
The government’s planning reforms may help increase supply over time, but the latest figures suggest that the impact has yet to translate into the level of annual delivery needed to meet the 1.5 million ambition.
Government Points to Housing Investment
Despite acknowledging the difficulties, Rayner said ministers would continue working towards the target.
She also highlighted the government’s investment in social and affordable housing, with a particular focus on increasing the number of council homes being built.
“The prime minister wants us to make sure we’re building council houses. He’s made that absolutely, fundamentally clear,” Rayner said.
She also pointed to a 15% increase in home starts during the previous year as evidence that government policies were beginning to have an impact.
Prime Minister Andy Burnham has separately promised what he describes as the largest council housebuilding programme since the period following the Second World War.
However, detailed plans setting out exactly how that ambition will be delivered have yet to be published.
Homes England Activity Increases
There are signs of stronger activity within government-backed housing programmes.
Homes England recorded 42,433 housing starts during 2025/26, representing an 11% increase compared with the previous year.
The agency also reported 40,332 completions, which was 9% higher year-on-year.
However, these figures relate specifically to Homes England-supported programmes and should not be confused with total housing delivery across England.
As a result, the increase in government-backed construction does not by itself close the gap between current delivery levels and the 300,000-plus homes needed each year to reach the wider target.
What Happens to the 1.5m Target?
With fewer than three years remaining before the end of the parliament, the government’s housing pledge is becoming increasingly difficult to achieve.
Rayner’s admission that there is now only a “slim chance” of reaching 1.5 million homes is arguably the clearest indication yet of the scale of the problem.
The government has not formally abandoned the target, and ministers continue to point to planning reforms, increased housing starts and investment in social housing as evidence of progress.
However, the latest delivery figures show that the pace of development remains below what would be required.
For the property industry, the coming years will therefore be important in determining whether the government’s measures can produce a substantial increase in housing supply or whether the 1.5 million homes pledge ultimately falls short.
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