The Government’s housing agency, Homes England, has achieved its annual target for new homes built, despite ongoing concerns about the feasibility of its longer-term goal of 1.5 million homes.
Provisional data reveals that Homes England exceeded its 2024-2025 targets, which were set by the Government. These targets included the number of new homes started, completed, and the number of development sites secured.
Meanwhile, Labour has pledged to deliver 1.5 million new homes by 2029. However, many experts within the industry remain sceptical about reaching this ambitious figure.
Supporting these doubts, the Office for Budget Responsibility released a forecast alongside the Spring Statement, estimating that 1.3 million net new homes will be built by 2029 — falling short of the 1.5 million target.
Homes England has also secured land capable of supporting the construction of 79,000 additional homes. This represents a significant increase compared to the figures from 2023/24, according to the latest data.
Matthew Pennycook, the minister of state for housing and planning, commented on the achievement, saying: “Last year, I outlined ambitious priorities for Homes England, and I am pleased to see that the agency has surpassed important housebuilding targets. This progress will help accelerate the delivery of new homes and support place-based regeneration.”
Labour’s 2029 building target ‘won’t be met’
Steven Mulholland, chief executive of the Construction Plant-hire Association, suggests the situation on the ground may be less positive than the official figures imply.
The latest Global UK Construction Purchasing Managers’ Index (S&P) shows construction output has fallen for the fourth consecutive month, highlighting ongoing challenges in the sector.
Mulholland warned that, while Homes England’s numbers might seem promising at first glance, they could create a misleading impression of progress.
He noted that the Chancellor has already acknowledged the country is unlikely to meet the 1.5 million homes target.
Mulholland emphasised that headline figures fail to reflect the real obstacles facing the industry.
He pointed to recent National Insurance increases, impending changes to Business Property Relief, inheritance tax on family businesses, and strict new employment and building regulations as factors putting significant strain on businesses responsible for driving employment and growth.
According to him, these pressures make it increasingly difficult to deliver the much-needed homes across Britain.
Mulholland urged Labour to urgently reassess these policies if it wants to avoid falling further behind its 1.5 million home building goal.
Without a strong network of firms and supply chains, he warned, the target simply will not be reached.
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