November 14, 2024 4:27 pm

Insert Lead Generation
Nikka Sulton

Labour has made a bold commitment to build 1.5 million new homes by 2029, promising the “biggest growth in social and affordable housebuilding in a generation.” However, this ambitious target has been cast into doubt by Peter Denton, the chief executive of Homes England, the government agency tasked with driving housing supply.

In an email to his staff, Denton acknowledged the scale of the challenge, referring to the housing goal as “amazing and incredible ambitions.” However, he emphasised that, in his view, meeting such targets would require a longer time frame. He noted that, “realistically,” it would take at least two parliamentary terms to accomplish, pushing the end date for this housing initiative to 2034—significantly later than the 2029 deadline originally set by ministers.

Denton’s comments have raised concerns about the feasibility of the government’s housing pledge, casting doubt on whether they can meet the timeline they have promised. The 1.5 million homes target has long been a central focus for Labour, seen as vital for addressing the nation’s housing crisis. However, with Denton’s remarks, the ambitious nature of this pledge is now under greater scrutiny.

The government’s current housing plan, aimed at significantly boosting affordable housing, has come under increasing pressure. Critics argue that the timeline is too aggressive, particularly given the challenges of land acquisition, planning permissions, and the construction industry’s capacity to deliver on such an extensive programme.

With Denton’s candid assessment now public, questions are being raised about the government’s ability to meet its target in the promised time frame. The debate surrounding the housing plan is expected to intensify as further details about how the government intends to deliver on this pledge emerge.

Homes England has stated that it will not comment on the “personal” email sent by Peter Denton, which was not intended to be shared outside the organisation. The email has sparked debate, especially as it casts doubt on the government’s ambitious housing target. Despite this, the Ministry of Housing, Communities and Local Government has reaffirmed its commitment to delivering the promised 1.5 million new homes within the five-year timeframe.

However, developers, the very ones who will be tasked with building the new homes, have expressed scepticism about the feasibility of the plan. They are warning that, given the current challenges in the housing sector, achieving the goal within five years is highly unlikely. In reality, they argue, it may take a decade to complete the necessary developments and meet the housing demand. This has raised concerns about whether the government’s target is realistic and whether the required infrastructure and resources are in place to support such an ambitious project.

 

‘No chance’ of 1.5m new homes in five years

Rico Wojtulewicz, head of housing and planning policy at the National Federation of Builders, which represents small and medium-sized housebuilders, has expressed strong doubts about the government’s plan to deliver 1.5 million new homes within five years. Speaking to *i*, he said: “There is no chance that the Government’s plan for 1.5 million homes will be delivered in five years.”

Wojtulewicz explained that, in his view, the target is unrealistic due to the government’s over-reliance on large housebuilders and big development projects, which can take up to 10 years to complete. He warned that while it might be possible to achieve the goal within two parliamentary terms, this would require the government to implement the right policies and act swiftly.

He further emphasised that, at best, the project would take at least one-and-a-half terms to complete. However, he believes this timeline is only achievable if the government moves quickly and puts the correct policies in place. So far, he believes they have not acted with the urgency needed to make the target a reality.

The Home Builders Federation, which represents many of the UK’s largest housebuilding firms, has also raised concerns about the government’s ambitious target. Chief executive Neil Jefferson shared his doubts, noting that while the government’s swift moves to address constraints in the planning system were welcome, more action would be needed to meet the goal of 1.5 million homes within five years.

Jefferson explained that achieving this target would require the government to utilise more policy tools, as simply addressing planning constraints would not be enough. He pointed out that it could take an entire parliamentary term just to complete the first house in a large 1,000-home development once the planning application had been approved by the local authority. This highlights the scale of the challenge and the significant time needed to deliver such a large number of homes.

 

‘Anger’ among Homes England staff at ‘lack of focus’

The news comes amid significant uncertainty surrounding the Government’s new homes programme. Just last Friday, it was announced that Peter Denton would be leaving his position as CEO of Homes England, a body that ministers have consistently described as “vital” to the success of their housing agenda. Alongside him, the agency’s chair, Peter Freeman, is also stepping down.

At the same time, there are reports of growing frustration within Homes England. Staff members have expressed “anger” at what they perceive to be mismanagement, particularly around the agency’s use of consultants. Some have even gone as far as to accuse the agency of “throwing away” money, while others cite concerns about its “lack of focus” and “dysfunctional” operations. There’s also been criticism of a “top-down management culture” that, according to staff, treats employees poorly.

However, Homes England has strongly rejected these claims, stating that it does not recognise “this anonymous commentary on our leadership and culture.” The agency asserts that such feedback does not reflect the views of its colleagues or partners. In response to these issues, an interim CEO has been appointed and is expected to begin in January. 

In an email to staff on Friday, Denton stated that despite the economic and political volatility, and the ambitious scale of the housing targets versus available resources, the agency had managed to perform “rather well.”

He continued, “But the new Government has amazing and incredible ambitions of its own. Who could not be excited by 1.5 million homes, meaningful local growth plans, and the largest delivery of new social housing in a generation?”

“This places Homes England at the epicentre of everything – a journey where the agency’s role becomes even more critical to ministerial ambition. However, realistically, this is a two-parliamentary term approach, stretching well beyond any timeline I personally envisaged for myself.”

 

Ministry says housing programme is on track

After i approached Denton for comment regarding his email, it was suggested that he was referring to the social housing pledge rather than the 1.5 million new homes target when discussing the timescale.

However, when this was put to the Housing Ministry, i was informed that the growth in social and affordable housing promise, made by Deputy Prime Minister Angela Rayner, was part of the 1.5 million homes target. This was also expected to be delivered by 2029, within the five-year Parliamentary term.

A spokesperson for the ministry said, “We have already taken steps in July and in the Budget, giving councils more flexibility with right to buy receipts and £500 million for the affordable housing programme.” 

They continued, “These are the first of a series of interventions which will be announced in the coming weeks and months.”

Denton’s candid email admits that when he joined the agency in 2021, he had been “pretty clueless in many respects.” 

He wrote, “I simply had no idea of the scale, reach, and complexity of the agency. I also had minimal political or government exposure and, crucially, little appreciation of the actual position of the agency internally or with its stakeholders… it’s been a learning curve.”

While Freeman’s departure from Homes England as chair next year had been expected, Denton had been anticipated to stay at the agency until 2026.

 

Nearly £400k spent on internal staff meeting

In March, an investigation by *i* revealed concerns about Homes England, describing it as a “dysfunctional” and “sick” organisation that had kept councils waiting for years and frustrated builders who eventually walked away. 

Former senior insiders shared that the agency, which was relied upon by the then Housing Secretary Michael Gove to “supercharge” urban regeneration, had turned into a consultants’ “gravy train”. They cited issues such as secrecy, a “horrifying lack of focus,” and what some described as verging on the “immoral.”

In April, *i* reported on growing discontent among Homes England staff, who felt the agency was neglecting its delivery goals. They also expressed concern over its spending, including nearly £400k spent on an internal meeting. Many feared that the agency’s “severe budget position” could result in job losses, with some staff members indicating they would prefer to leave.

Their comments followed Denton’s admission to staff that “serious” spending on consultants would continue. He warned that the agency was at risk of facing “a finance system that is literally about to fall over,” potentially leaving Homes England “in proper trouble.”

A Homes England spokesperson responded, saying: “We do not recognise this anonymous commentary on our leadership and culture, and it does not align with the feedback we receive from colleagues and partners. We’re immensely proud of the positive difference our colleagues make to communities across England every single day.”

The Ministry of Housing, Communities, and Local Government also commented, stating: “Homes England’s vital role in boosting growth and helping us deliver the homes we need will continue under new leadership. The Housing Minister recently set out seven immediate priorities for the agency to focus on, and we will continue to measure their work against these objectives.”

 

 

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