The UK government is unlikely to meet its target of building 1.5 million homes by the next election, Communities Secretary Angela Rayner has acknowledged. She described the pledge as a "stretch target" but stated it was not being abandoned, despite significant headwinds from inflation and construction costs.
The government's ability to meet its housing targets has significant implications for the UK's housing affordability crisis and supply shortage. Delays and shortfalls in new home construction can exacerbate these issues, impacting renters and prospective buyers.
Communities Secretary Angela Rayner has acknowledged that the UK government is unlikely to meet its target of building 1.5 million homes by the next election, stating there is only a "slim chance" of achieving the goal. Rayner described the pledge as a "stretch target" but insisted it was not being abandoned.
Rayner, who returned to her role after Andy Burnham became prime minister, made the admission on Sunday. She told the BBC's Sunday with Laura Kuenssberg that while it was a "slim chance," she was "definitely not giving it up" and that it was "really important that we keep a target."
She indicated that Prime Minister Burnham's focus is now on building council houses, which she said is taking priority. "The prime minister wants us to make sure we're building council houses. He's made that absolutely, fundamentally clear," Rayner said. She added that the government has announced 10 billion for a social and affordable homes program, and that home starts were up by 15% last year, suggesting progress is being made.
However, Rayner cited "headwinds that are coming our way internationally and through those construction costs" as having a negative effect on the target. The government's target has been significantly hampered by inflation, partly attributed to the war in Ukraine, leading housebuilders to cut back on developments despite Labour's planning reforms.
Burnham had previously backtracked on plans to spend the 10 billion from the 10-year Affordable Homes Programme entirely on social homes. The funds will now be used for a mix of subsidized housing types in England, in line with the Starmer government's policy. Outside London, the 10 billion will fund 70,000 homes, approximately 60% of which will be social rented houses, with the remainder being shared ownership schemes and sheltered housing. An additional 6 billion will be allocated to London at a later date.
Ministers are also exploring ways to relax regulations for private sector builders, including encouraging councils to adopt a "default yes" approach to housing developments located within a reasonable walking distance of well-connected train and tram stations.