New figures showing 38,000 homes started in past year 'falls woefully short' of Labour's 1.5million target
WORRYING new figures showing just 38,000 homes started in the past year “falls woefully short” of Labour's 1.5million target, experts claim.
Homes England recorded 38,308 new houses started and 36,872 new homes completed between April 1, 2024, and March 31, 2025, in new data released today.
This was a 5% rise in starts and a 12% rise in completions compared to the previous year.
Of these starts, 30,087 were for affordable homes, up by 0.6% and making up 79% of the total. There were 5,680 for social rent, a 43% increase.
Newspage spoke to experts who said the figures are miles away from where they need to be for Labour to hit their target of 1.5million new homes built by 2029.
Rob Peters, Principal at Simple Fast Mortgage, said “these numbers are a drop in the ocean compared to what’s needed”.
He added: "To hit 1.5 million by 2029, we need roughly 300,000 homes a year, and this shows less than 40,000 started in 12 months.
"Unless we see a tenfold acceleration, this goal will become another unfulfilled political promise which seems the likely outcome given the vast amount of bureaucratic red tape and failed systems and processes creating barriers that stand in the way of property developers making any meaningful impact.
“With such limited new supply, house prices are unlikely to cool anytime soon.
Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor, agreed, adding: "These kinds of numbers would see barely 250,000 homes built by 2029, never mind 1.5 million. While an increase in the number of homes in the past year is welcome, it's nowhere near enough to meet demand or satisfy Labour's big political promise from the last election.
"We need to see a lot more houses built over the next few years, if this goal is going to be realised, and that's a big if, judging by these numbers. Time will tell whether this is just another one of the empty promises we've had from politicians over the past decade, or the start of a significant increase in the country's housing supply."
While Ben Perks, Managing Director at Orchard Financial Advisers, joked: "Britain is so far behind in building new properties, I don’t even know why they monitor this data. It’s like me keeping track of my 100m sprint time."
Rohit Kohli, Director at The Mortgage Stop, said “these figures don’t even scratch the surface of what’s needed”.
He continued: "Yes, it’s good to see more completions, especially for social rent, but we’re still miles off the pace needed to hit Labour’s 1.5 million target. Without serious planning reform - not just to build more homes, but to deliver the roads, schools and services communities need - we’re just adding pressure to already stretched areas.
"The current proposals risk turning into a landowner’s paradise, with land banked but not built on. Until that changes, house prices will remain high and out of reach for many."
Tony Redondo, Founder at Cosmos Currency Exchange said it “falls woefully short of Labour’s 1.5million homes target by 2029” with just 37% of the 300,000 annual completions.
He continued: "Structural barriers like slow planning, labour shortages, and land scarcity persist.
"This supply shortage will not curb house price growth. Savills forecasts an £84,000 average price increase by 2029. The longstanding supply shortages combined with ever-increasing demand will keep prices climbing, hitting first-time buyers hardest."
Though Chris Barry, Director at Thomas Legal , did think the country is on the right track with “a spiralling upward trend on the way”.
He said: “We are certainly seeing spades in the ground appearing within development boundaries across vacant land across the south of England. I know of at least three clients who have been negotiating planning for decades who have in the past four months achieved a scheme and started building.
"The published numbers are a drop in the ocean but there is certainly a spiralling upward trend on the way.”
