Construction projects completed by Labour during their initial year in governance: quantity of homes constructed
The Labour government's ambitious pledge to build 1.5 million new homes by 2029 is encountering significant hurdles, with the current delivery rate falling short of the necessary pace to meet the target.
In the first year of the Labour government (July 9, 2024, to June 15, 2025), an estimated 186,600 net additional homes were delivered in England. This figure, while a step in the right direction, is far below the annual rate required to hit the 1.5 million target in five years—around 300,000 homes per year would be needed on average going forward. Over the first three quarters since Labour took power, about 86,000 new homes have been started in England, an improvement over the previous administration but still only about a quarter of the annual target of 370,000 homes.
Current forecasts indicate that at the present rate, the government is on course to meet the 1.5 million homes target by 2036 rather than 2029, making the pledge look increasingly out of reach. Ministers characterize this early period as a “ramp-up phase,” emphasizing that planning reforms and cutting red tape take time, but progress remains underwhelming amid political hurdles, including resistance from within Labour’s own MPs and external challenges.
The main challenges facing the government's housing plans include slow progress in planning reforms and internal political resistance. The breakdown of housing types shows that the majority of completions were private new builds, with approximately 36,872 affordable housing completions occurring, with a significant portion being social rent, intermediate, and affordable rent homes. Notably, 79% of the housing starts by Homes England were affordable homes.
Steve Wood, CEO of the National House Building Council (NHBC), noted a 36% increase in developers registering their intent to build new homes in Q1 2025 compared to the same period last year. However, despite a rise in developer interest, the ongoing challenges of planning bottlenecks and workforce shortages could hinder the government's housebuilding plans.
The government has committed £39 billion to affordable housing, with 60% allocated to social rent initiatives. The coming months will be critical in determining whether the government can accelerate housing delivery through effective planning reforms, address workforce challenges, and ensure sustained investment in affordable housing to meet its housing commitments and alleviate the ongoing housing crisis.
Sources: [1] BBC News, "Labour pledges 1.5m new homes by 2029," 13 September 2023,
- To tackle the slow progress and meet the Labour government's pledge to build 1.5 million new homes by 2029, an acceleration in planning reforms is crucial.
- The government, in its effort to support affordable housing, has earmarked £39 billion for the cause, with a significant portion allocated to social rent initiatives.
- Despite a 36% increase in developers registering their intent to build in Q1 2025, ongoing challenges such as planning bottlenecks and workforce shortages could thwart the government's housebuilding plans.
- In the first year of the Labour government, an estimated 186,600 net additional homes were delivered, far below the necessary pace required to meet the target, with approximately 300,000 homes per year needed on average going forward.
- The breakdown of housing types shows that the majority of completions were private new builds, with approximately 36,872 affordable housing completions occurring, with a significant portion being social rent, intermediate, and affordable rent homes. Notably, 79% of the housing starts by Homes England were affordable homes.
- In the realm of politics, the government's housing plans face internal political resistance, including resistance from within Labour’s own MPs, in addition to external challenges. This resistance slows down the planning reforms that are essential for boosting the housing delivery rate.
