Labour’s ambitious target of building 1.5 million new homes by 2029 is now considered “effectively dead” by senior government figures, with ministers expected to quietly stop referencing the goal. The pledge was a key part of Labour’s 2024 election manifesto, promising the fastest housebuilding rate since the 1960s. However, according to Savills, only 856,000 completions are on track by March 2029 — just 57% of the target.
Since the election, 450,000 to 480,000 homes have been built. Housing Secretary Angela Rayner recently described the target as a “stretch goal,” blaming external factors including the Iran war and rising construction costs. Industry experts, including Savills’ Emily Williams, argue the target was always unachievable due to low baseline activity and now worsened by spiralling costs and weak demand.
A new equity loan scheme, “Your First Home,” is expected to boost sales by only 25,000 annually. The Home Builders Federation stressed the ongoing need for a viable housing framework, despite the target’s apparent abandonment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing