Property

Government's housing target won't be achieved until 2028

In 2017, the UK government pledged to build 300,000 new homes a year by ‘the mid-2020s’. However, with only a few years to go until the deadline, new research reveals that, at the current rate of progress, this will not be achieved until 2028.

Property Reporter
3rd August 2021
construction 665

Birmingham and Newcastle-based property developer, StripeHomes, highlights that for decades, ruling government parties have outlined ambitious housing targets to help pull the nation out of this crisis, but each and every time, they’ve failed to bring their plans to fruition and that this government has only just managed to break the 200,000 homes a year mark, let alone get close to 300,000.

In fact, according to Stripe's data, they were closer in 2006, when they delivered 223,500 new homes. This number took a tumble in the years following the financial crisis of 2007 and, to date, has not been achieved again. The 200,000 mark was only breached again in 2019 when just north of 214,000 homes were delivered.

However, the research shows that based on historic performance trends, the government may have beaten this previous total in 2020, with an estimated 225,000 homes thought to have been delivered. If so, this will mean an overall increase of just 1,500 homes in almost 15 years.

By analysing historic delivery performance since 2005, StripeHomes has also looked at the estimated time frame required for the government to actually hit its target of 300,000 new homes per year.

The data suggests that this year, 2021, 235,500 homes will be delivered and when looking forward, around 10,000 homes will be added to this number each year. However, at this rate of progress, the target of 300,000 will not be reached until 2028.

James Forrester, Managing Director of StripeHomes, commented: “The government knows full well how bad the housing situation in the UK is, and they also know that delivering 300,000 new homes every year is a monumental task, not least at a time when global and local economies are in such flux following the pandemic.

“But if we’re waiting until 2028 to reach this much-needed target, we’re waiting far too long, especially when England alone currently has over 93,000 households in temporary accommodation and 1.1 million households currently on the waiting list for a social home.

“Finally, the availability of new homes must also be matched by affordability. Yes, prices will fall slightly if supply is increased, but it’s more about ensuring that homes are built in the areas where they’re most needed and being made easily accessible to those people who need them.”

Related articles
More from Property
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.