Housing minister Matthew Pennycook has expressed significant doubt about the government's ability to achieve its pledge of building 1.5 million new homes across England within the current parliamentary term, stating the target is "looking really tough."
In nearly two years since Labour's general election victory in July 2024, only 392,400 new homes have been completed. This pace falls far short of the average of 300,000 homes per year required to meet the 1.5 million target by 2029.
Speaking on LBC radio, Pennycook acknowledged that the target was always "stretching" and that the government had not set a specific annual figure, but rather a target for the entire Parliament. He explained that low completion rates were anticipated in the early years of the administration, partly due to the need to address changes made by the previous government, such as the abolition of housing targets.
The minister cited current challenges faced by housebuilders, including rising material prices attributed to the conflict in the Middle East and sluggish demand for new properties due to mortgage rates. He described it as a "very, very challenging time for the housing market."
Despite these admissions, Pennycook maintained that the government remains committed to the "ambition" in its manifesto, arguing that a lower target would not sufficiently galvanize the sector to address the nation's housing crisis. He emphasized that tackling the housing crisis is a national imperative and a priority for the Prime Minister.
New Planning Measures Introduced
Alongside Pennycook's remarks, the government announced new measures intended to boost housebuilding. The revised National Planning Policy Framework (NPPF), published recently, introduces a default approval for homes built within reasonable walking distance of well-connected train stations. Housing Secretary Angela Rayner stated that this shift would help combat the housing crisis and improve living standards.
Furthermore, plans have been published to protect public houses by making it more difficult for developers to convert them into flats or shops. The NPPF also aims to streamline the planning system. Pennycook suggested that these planning reforms are foundational to ensuring higher and more sustainable building rates in the future by creating a clearer and more certain system for developers.