Labour missing housebuilding target by 170,000 homes a year, bleak report finds

Labour is on track to miss its housebuilding target after planning permission for new homes tumbled to a record low.

A bleak report by the Home Builders Federation yesterday dealt a blow to the Government's vow to build 1.5million properties by 2029.

Stark figures show Labour is falling short of its target by 170,000 homes a year. Industry leaders said the data was 'disastrous' and without urgent support from ministers there is 'little chance' of reaching the goal.

Just 39,170 homes were given planning permission in England in the first three months of the year – the lowest quarterly figure since records began.

That was a 55 per cent drop on the previous quarter and almost 32 per cent lower than a year earlier. The 225,067 units given approval in the 12 months to the end of March was the worst performance in 12 years.

The federation said its data 'starkly illustrates the urgent need for Government to address the barriers to housing supply' if they are to get 'anywhere near the much-vaunted' target.

A lack of support for first-time buyers, overstretched planning departments and high taxation has squeezed housing development, the trade association said. It also cited a problem with housing associations failing to buy tens of thousands of new homes designated for social and affordable rents.

Chief executive Neil Jefferson said: 'The latest planning figures are disastrous for an industry and a government looking to increase housing supply over the coming years.

'Unless urgent interventions are made, there seems little chance of us building the homes we know are desperately needed.'

Around 200,000 homes are being built each year, below the 370,000 target, the figures show.

The number of new developments approved in the first quarter of 2025 was 2,018 – the worst quarterly figure in 20 years.

The HBF called on ministers to introduce support for first-time buyers which could lead to the construction of an extra 100,000 homes.

Investment in high-rise blocks has 'collapsed' due to delays at the Building Safety Regulator which 'has been unable to deal with its workload', the group said.

There is also a shortfall of 2,000 local council planning officers, and new taxes have 'ballooned' since 2020, putting pressure on builders.

A housing department spokesman said it is 'taking decisive action' to speed up the planning process and that its 'seismic reforms will help drive UK housebuilding to its highest level in over 40 years'.

Meanwhile, builders could be required to install solar panels on the 'vast majority' of new homes in England, according to Energy Secretary Ed Miliband.

It comes a month after No10 confirmed the panels should be installed on as many new properties as possible amid speculation that ministers will make them a mandatory requirement on new builds by 2027.

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