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Housing Secretary Steve Reed has acknowledged that a significant increase in housebuilding will be necessary to fulfill Labour’s commitment to delivering 1.5 million new homes. Currently, the government is projected to fall just short of this goal. Since Labour took office, new housing starts have dropped sharply from 207,000 to 139,000 units, marking the lowest level since the onset of the Covid-19 pandemic.
Reed expressed optimism that the government would “just meet” the target once the effects of recent planning reforms, including revised housing targets and some development on former green belt areas, begin to take effect. During an appearance on BBC Radio 4’s Housing Britain series, he explained that ministers are “pulling every lever” they can to achieve the goal by 2029, which coincides with the anticipated timing of the next general election.
Having assumed the housing portfolio three months ago from Angela Rayner, Reed described the expected housing delivery as resembling a hockey stick, with a modest level of new builds initially and a sharp rise towards the end of the parliamentary term. He emphasized that the government has already introduced significant changes aimed at boosting construction, notably the Planning and Infrastructure Bill, which is nearing completion in Parliament and is designed to greatly accelerate decision-making processes. A key element of the strategy involves facilitating new homes near public transport hubs, which Reed believes alone has the potential to add around one million houses.
Earlier this month, the government unveiled plans to reform the house-buying process, seeking to accelerate transactions and reduce costs for first-time buyers. The Office for Budget Responsibility (OBR) forecasts that about 1.49 million net additional dwellings will be constructed during Labour’s time in office—slightly under the 1.5 million target by 10,000 homes. The OBR anticipates housing supply to dip to 215,000 units next year but projects a sharp increase to 305,000 net additions by 2029-30, just before the next election.
In the run-up to the recent Budget, the Home Builders Federation (HBF), representing firms responsible for 80% of new homes in England and Wales, cautioned that further measures would be needed to hit the ambitious target. The HBF called for greater support for first-time buyers and criticized a rise in landfill tax, arguing it adds about £14,000 to the cost of each home built.
Housing Minister Matthew Pennycook defended the government’s ambitious housing target in an interview with i Paper housing correspondent Vicky Spratt, who hosts the Housing Britain series. Pennycook explained that setting a high target was intentional, stating that “anything less would have been seen as unambitious in the context of the housing crisis we face.” He described the 1.5 million homes figure as challenging enough to stimulate the sector. Pennycook also emphasized that Labour’s approach focuses on maintaining a “high and sustainable” level of housebuilding instead of a short‑term boost. He highlighted plans to reduce reliance on large developer firms and to actively involve councils alongside small and medium-sized builders in delivering new homes
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