Government hits yearly housebuilding target - but doubts over 1.5million goal remain
The Government's housing agency has met its annual target for the number of homes built, despite doubts over its longer-term 1.5million goal.
Provisional figures show that Homes England surpassed its 2024-2025 annual targets, set centrally by Government.
This included the goals set for the number of new homes started, the number of new homes completed, and the number of sites secured on which homes will be built.
Labour has promised to build 1.5 million homes by 2029, but many industry insiders believe the home building target won't be met.
An Office for Budget Responsibility forecast published alongside the Spring Statement said it expected 1.3million net new homes to be built by 2029.
Homes England works with local authorities, housebuilders and other organisations with the aim of increasing the number of homes built across the country.
The Government figures show it has enabled the completion of more than 36,000 homes, up 14 per cent from 2023-24.
The vast majority of these would have been started under the previous Conservative government, however.
The figures only refer to homes which are part of projects that Homes England has been involved with, and do not represent the total number of homes completed across the country.
The figures also show that construction has started on 38,000 homes, up 6 per cent on 2023-24.
Homes England has also secured land that is capable of delivering 79,000 further homes, which is also significantly up from 2023/24, the data shows.
Matthew Pennycook, minister of state for housing and planning, said: 'Last year I set out ambitious priorities for Homes England and I am pleased that the agency has exceeded key housebuilding targets to ramp up the delivery of new homes and place-based regeneration.'
Labour's 2029 building target 'won't be met'
However, the reality may be more stark on the ground, according to Steven Mulholland, chief executive of construction trade body the Construction Plant-hire Association.
Construction output is down for the fourth month in a row, according to the latest Global UK Construction Purchasing Managers' Index (S&P).
'While the Homes England figures look encouraging on the surface, they risk giving a false sense of progress,' said Mulholland.
'The Chancellor has already admitted we're on course to miss the 1.5 million homes target.
He added: 'These headline figures don't capture the real barriers holding the industry back.
'Recent National Insurance hikes, looming changes to Business Property Relief, inheritance tax on family businesses and rigid new employment and building rules are piling pressure on the very businesses generating employment and growth, making it harder to deliver the vital homes Britain needs.
'If Labour does not want to fall even further behind on its 1.5 million new homes target, it must urgently take stock and consider the impact of these policies, because without the firms and supply chains needed to complete them, those homes simply won't get built.'
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