Housing and Communities Secretary Angela Rayner has admitted there is now only a “slim chance” of the Government meeting its target of building 1.5 million homes in England before the next general election.
Rayner said the pledge remained in place and insisted she was “definitely not giving it up”, but acknowledged for the first time that the Government could fall short of one of its biggest domestic policy targets.
The admission comes despite major planning reforms and billions of pounds of public investment intended to accelerate housebuilding across England.
Rayner admits target may be missed
Speaking to the BBC's Sunday with Laura Kuenssberg, Rayner was asked about the prospects of delivering 1.5 million homes before the next election.
“It's a slim chance, but I'm definitely not giving it up,” she said, describing the commitment as a target that had always been deliberately stretching.
The comments mark a significant shift in tone. Rayner has previously stressed her determination to achieve the target, telling the Housing, Communities and Local Government Committee earlier this year that she was personally determined not to lose.
Construction costs hit housebuilding
The Government says worsening international economic conditions and rising construction costs have made the target more difficult to achieve.
Private housebuilders have also reduced development activity despite planning reforms intended to unlock more sites and increase the supply of new homes.
Rayner said international headwinds and construction costs were having a negative effect on delivery.
She nevertheless argued that the Government's policies were making a difference and said housing starts had risen.
Burnham puts council housing at centre of strategy
Prime Minister Andy Burnham has increasingly placed council and social housebuilding at the centre of the Government's housing programme.
In August, the Government announced nearly £10 billion in the first wave of allocations from its £39 billion Social and Affordable Homes Programme.
According to the Government, the funding will support more than 70,000 homes across England through 33 strategic partners including councils and housing associations.
Around 60% of the homes delivered through those partnerships are expected to be for social rent.
More than £16 billion remains to be allocated outside London over the lifetime of the programme, while the Greater London Authority intends to offer at least £6 billion through the programme for the capital.
Planning reforms were designed around 1.5m pledge
The 1.5 million homes commitment has been central to the Government's housing and planning strategy.
Mandatory housing targets were restored for councils, while ministers introduced measures designed to encourage development on brownfield and so-called grey-belt land.
The National Housing Delivery Fund is providing £5 billion in capital grant funding for infrastructure and land between 2026 and 2030, with the Government explicitly stating that the programme supports its ambition to deliver 1.5 million homes.
When the planning reforms were originally announced, Rayner said they would put the Government on the path towards delivering the target.
Pressure grows over flagship pledge
Rayner's acknowledgement will increase political pressure on the Government over whether its housing programme can deliver homes quickly enough to meet demand.
The target has not been formally abandoned and remains Government policy.
But the Housing Secretary's admission that there is now only a slim chance of reaching it represents the clearest indication yet from inside Government that the flagship pledge could be missed.
Attention will now turn to whether Burnham's emphasis on council and social housing can accelerate construction sufficiently, or whether ministers eventually revise the overall target as the next election approaches.
Sources
- The Guardian — Rayner says there is only a 'slim chance' of meeting 1.5m homes target
- GOV.UK — Historic council housebuilding comeback to help families into secure homes
- GOV.UK — National Housing Delivery Fund
- UK Parliament — Housing, Communities and Local Government Committee evidence
- GOV.UK — Housing targets increased to get Britain building again