Labour Set to Miss Ambitious Housing Target by Nearly Half, Says Savills

[Social Media]

 

Labour Set to Miss Ambitious Housing Target by Nearly Half, Says Savills

 

The Labour government is on course to fall significantly short of its pledge to build 1.5 million new homes by 2029, according to research by property firm Savills. The forecast indicates that only around 840,000 homes will be completed during Labour's first five years in power, just over half of the promised total, due to dwindling demand and a marked decline in planning approvals.

 

The Home Builders Federation (HBF) revealed that only 39,170 new homes were granted planning permission in England during the first quarter of 2025, marking the lowest quarterly figure since 2012. While the Ministry of Housing, Communities and Local Government insists that the 1.5 million homes target remains intact, it concedes that the figure represents “a stretching target.”

 

Developers have long expressed skepticism about the feasibility of building that many homes within five years. “All indicators for housing supply continue to stagnate or go backwards,” said Neil Jefferson, chief executive of the HBF. Dan Hill, a researcher at Savills, emphasized that the ambitious goal could only be achieved through robust government support to boost demand. “Very significant demand support” is required, he said, likely in the form of a new Help to Buy scheme or similar initiative. “Developers will only build what they can sell,” Hill noted.

 

The Help to Buy scheme, which was instrumental in assisting first-time buyers for years, ended in March 2023. Its absence has left prospective homeowners without any form of government-backed assistance for the first time in six decades, compounding challenges for both buyers and developers.

 

There is also growing concern that the upcoming spending review may introduce cuts to the housing budget. Such a move, industry leaders warn, could further tighten the already constrained supply of homes. A coalition of housing providers recently penned a letter to Housing Minister Matthew Pennycook, warning that many social housing providers “are struggling to fund required improvements to current housing portfolios, let alone deliver new homes” due to rent control restrictions.

 

Even if demand were to rebound, Hill warned that “building volumes will be constrained by the speed at which the housebuilding sector can expand its supply chains and labour force.” Labour’s target would require annual housing completions to reach an average of 300,000 homes — a considerable leap from recent figures.

 

Between 2019 and 2024, during the five years prior to Labour’s election victory, an average of 207,000 homes were completed each year in England, according to Savills. The most recent government statistics show that 198,600 homes were built in the year leading up to March 2024. Based on current trends, Savills now expects home completions to average just 167,000 per year from 2024 to 2029 — a figure that, if accurate, leaves the government far short of fulfilling one of its most high-profile promises.

 

As developers hold back amid uncertain market conditions and planning approvals continue to decline, the prospect of hitting Labour’s housing target appears increasingly remote. Without substantial policy shifts or renewed financial support for homebuyers, the UK’s housing shortage looks set to deepen in the coming years.

 

  Adapted by ASEAN Now from The Times  2025-06-10

 

 

[blaze master]

Surprise. Another inept government. 

[JonnyF]

I doubt they'll build 25% of the target.

 

It won't matter anyway, they are a one term government. 

[Red Forever]

Still, nearly a million new homes is not to be sniffed at.

It’s a shame that some of the electorate only noticed this homeless problem after July 4th last year.

Never mind, in Labour’s 2nd term the rate of build will be ramped up.

[The Cyclist]

3 hours ago, Red Forever said:

Still, nearly a million new homes is not to be sniffed at.

 

I think the number was 

 

15 hours ago, Social Media said:

The forecast indicates that only around 840,000 homes will be completed during Labour's first five years in power,

 

In  the 5 years prior

 

15 hours ago, Social Media said:

Between 2019 and 2024, during the five years prior to Labour’s election victory, an average of 207,000 homes were completed each year in England, according to Savills.

 

That is over a million

 

2 immediate failures

 

1. Not hitting target

 

2. Building less than the previous Government.

 

3 hours ago, Red Forever said:

Never mind, in Labour’s 2nd term the rate of build will be ramped up.

 

BwaaaaHaaaaHaaaaHaaaaa,

[Chomper Higgot]

The Government are responding by increasing spending on social and affordable home building.

 

The doing the right thing by ordinary working people thing:

 

https://www.theguardian.com/politics/2025/jun/10/rachel-reeves-to-unveil-39bn-housing-boost-in-spending-review-shake-up

[BritManToo]

12 minutes ago, Chomper Higgot said:

The Government are responding by increasing spending on social and affordable home building.

 

The doing the right thing by ordinary working people thing:

 

https://www.theguardian.com/politics/2025/jun/10/rachel-reeves-to-unveil-39bn-housing-boost-in-spending-review-shake-up

I don't think the Labour party giving a flying one for the ordinary working people.

If they did they wouldn't be taxing their jobs, upping their pension age, forcing wages down with cheap immigrant labour, forcing housing prices up, and increasing their fuel prices for woke green energy dreams.

 

But they do want to appease the one world socialist government. 

[Chomper Higgot]

7 minutes ago, BritManToo said:

I don't think the Labour party giving a flying one for the ordinary working people.

If they did they wouldn't be taxing their jobs, upping their pension age, forcing wages down with cheap immigrant labour, forcing housing prices up, and increasing their fuel prices for woke green energy dreams.

 

But they do want to appease the one world socialist government. 

And yet here they are increasing spending on social and affordable housing.

Increased minimum wage already delivered, renters rights bill and workers rights bills now in process.

 

 

 

[BritManToo]

7 minutes ago, Chomper Higgot said:

And yet here they are increasing spending on social and affordable housing.

Increased minimum wage already delivered, renters rights bill and workers rights bills now in process.

No affordable housing for ordinary working people, mostly for foreign illegals and single mums.

Renters rights bills always results in higher rents, and harder for the ordinary working people to rent.

[Chomper Higgot]

3 minutes ago, BritManToo said:

No affordable housing for ordinary working people, mostly for foreign illegals and single mums.

Renters rights bills always results in higher rents, and harder for the ordinary working people to rent.

There you go, straight to your immigrant fixation.

 

Landlord by any chance?

[BritManToo]

16 minutes ago, Chomper Higgot said:

There you go, straight to your immigrant fixation.

Landlord by any chance?

Was a landlord in the 1970s, rented student and social housing to people who didn't pay their own rent.

Students paying the entire term in advance.

Pensioners and welfare recipients, paid direct by social services.

All rent controlled by the local councils (Brighton and Worthing)

If I were a landlord today, I'd be renting to illegals arriving on boats paid directly by social services.

 

Zero point in renting to working people who might lose their jobs and not pay, because you couldn't get them out. The profit was only ever in renting for guaranteed payment by the UK government.

The boat arrivals are an amazing profit opportunity for current landlords and I'd much prefer to rent to them (via direct government payments) than ordinary working people.

[Chomper Higgot]

1 minute ago, BritManToo said:

Was a landlord in the 1970s, rented student and social housing to people who didn't pay their own rent.

Students paying the entire term in advance.

Pensioners and welfare recipients, paid direct by social services.

All rent controlled by the local councils (Brighton and Worthing)

If I were a landlord today, I'd be renting to illegals arriving on boats paid directly by social services.

 

Zero point in renting to working people who might lose their jobs and not pay, because you couldn't get them out. The profit was only ever in renting for guaranteed payment by the UK government.

Grubby business.

 

Good to see Labour massively increasing spending on social and affordable homes while addressing renters rights.

 

 

[Bkk Brian]

Just now, Chomper Higgot said:

Grubby business.

 

Good to see Labour massively increasing spending on social and affordable homes while addressing renters rights.

 

 

Pity they did not keep their promises to the people who voted them in though and they have actually built less housing than the Tories did.

[DezLez]

5 hours ago, Chomper Higgot said:

Good to see Labour massively increasing spending on social and affordable homes while addressing renters rights.

And bankrupting the country and creating job loses in the process!

payrolled employees in the UK decreased by 55,000 (0.2%) between March and April 2025 and fell by 115,000 (0.4%) between April 2024 and April 2025.

Labour market overview, UK - Office for National Statistics

[Chomper Higgot]

1 hour ago, DezLez said:

And bankrupting the country and creating job loses in the process!

payrolled employees in the UK decreased by 55,000 (0.2%) between March and April 2025 and fell by 115,000 (0.4%) between April 2024 and April 2025.

Labour market overview, UK - Office for National Statistics

Don’t think the increased spending on house construction will or will not create jobs?

[coolcarer]

27 minutes ago, Chomper Higgot said:

Don’t think the increased spending on house construction will or will not create jobs?

Do you think there are 1000s of skilled builders waiting at home? 

[Nick Carter icp]

7 hours ago, BritManToo said:

Was a landlord in the 1970s, rented student and social housing to people who didn't pay their own rent.

Students paying the entire term in advance.

Pensioners and welfare recipients, paid direct by social services.

All rent controlled by the local councils (Brighton and Worthing)

If I were a landlord today, I'd be renting to illegals arriving on boats paid directly by social services.

 

Zero point in renting to working people who might lose their jobs and not pay, because you couldn't get them out. The profit was only ever in renting for guaranteed payment by the UK government.

The boat arrivals are an amazing profit opportunity for current landlords and I'd much prefer to rent to them (via direct government payments) than ordinary working people.

 

   Two things have change since then :

Housing benefit is now 10 % less than the medium average , so people on HB would be paying less than non HB .

   Housing benefit now get paid to the tenant and the tenant pays the landlord which means the tenant can just keep the money

[BritManToo]

1 hour ago, Nick Carter icp said:

Two things have change since then :

Housing benefit is now 10 % less than the medium average , so people on HB would be paying less than non HB .

   Housing benefit now get paid to the tenant and the tenant pays the landlord which means the tenant can just keep the money

You're wrong, there's still many direct payments to landlords.

The easiest is the 5 year plans, council rents for 5 years and hands back after they refurbish, or you can have another 5 year rental. You don't have to do anything but take the money. I hear it's now available for boat people.

[Nick Carter icp]

5 minutes ago, BritManToo said:

You're wrong, there's still many direct payments to landlords.

 

 

   The payment goes directly to the claimant/tenant  .

The landlord can ask for the payment to be made directly to him, but, The tenant decides who the money is paid to 

[BritManToo]

10 minutes ago, Nick Carter icp said:

 

   The payment goes directly to the claimant/tenant  .

The landlord can ask for the payment to be made directly to him, but, The tenant decides who the money is paid to 

Says not .........

https://www.propertytribes.com/5-year-lease-to-a-council-t-127660218.html

 

And rent to rent ........

https://www.axxco.co.uk/post/complete-guide-to-rent-to-rent-social-housing

[Nick Carter icp]

10 minutes ago, BritManToo said:

The easiest is the 5 year plans, council rents for 5 years and hands back after they refurbish, or you can have another 5 year rental.

 

   You need to make the property completely empty , you need to remove all your furniture ,beds table chairs the lot and you need to buy a new fridge and cooker and decorate the place in a neutral colour . You need fire doors put in, child locks on the windows and fire alarms attached to the mains .

   It would cost about 10 000 Quid to do the above and replace all the furniture  and the Council pay less rent than the going rate 

[Nick Carter icp]

32 minutes ago, BritManToo said:

 

And rent to rent ........

https://www.axxco.co.uk/post/complete-guide-to-rent-to-rent-social-housing

 

   Rent to rent ? , ha ha .

That shows that you have no idea what you are talking about