The government has said there are early signs of recovery in the housebuilding sector and insists it remains on course to deliver its target of 1.5 million new homes.
Latest official figures show that housing starts increased in the 12 months to September 2025, with 117,980 new builds getting underway. This represents an 18% rise compared with the previous year, suggesting activity is beginning to pick up after a challenging period for the sector.
More recent data also points to continued momentum. Between July and September 2025, construction starts rose by 3% year on year, reaching 29,620 homes during the quarter.
Since the current Parliament began on 9 July 2024, the government estimates that around 309,600 new homes have been completed. Ministers say this means more than a fifth of the 1.5 million target has already been achieved.
Housing Secretary Steve Reed said the figures show that changes to planning policy are starting to have an impact. He stated that the government is committed to delivering on its promise to build 1.5 million homes and will continue to reform the planning system while increasing investment in social housing. According to Reed, these measures are aimed at tackling the housing shortage inherited from the previous administration and helping more people access the homes they want.
However, industry bodies have cautioned against focusing solely on headline build numbers. Propertymark has warned that simply increasing overall supply will not be enough to resolve the wider housing crisis.
Timothy Douglas, Propertymark’s head of policy and campaigns, said that while any rise in housing delivery is positive and offers some reassurance after a prolonged period of uncertainty, the quality, location and type of homes being built are just as important as the total number.
He stressed that new developments must reflect local demand and include a balanced mix of tenures to support first-time buyers, renters and those in need of genuinely affordable housing. Without this, he warned, supply and demand will continue to be out of step.
Douglas also highlighted the importance of linking new housing with investment in infrastructure, transport and local services. He said long-term confidence among developers, lenders and buyers remains fragile, and reforms should prioritise stability and clarity rather than short-term solutions.
According to Propertymark, agents working on the ground continue to see significant mismatches between housing supply and demand. While the recent data may point to early progress, the organisation believes there is still considerable work ahead if the government is to meet its housing ambitions and deliver communities that can thrive over the long term.
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