Labour's 1.5million homes by 2029 pledge is “in the graveyard of political fantasy”, experts warn

LABOUR'S ambitious target of building 1.5million homes by 2029 is “in the graveyard of political fantasy” one year on, experts have warned.

It's 12 months since Keir Starmer secured a majority government - with an eyebrow-raising pledge to build one-and-a-half million new homes by the end of Labour's term.

One of the party's core promises when it came to power was to “back the builders and not the blockers”.

Homes England recorded 38,308 new houses started and 36,872 new homes completed between 1st April 2024 and 31st March 2025, in new data released last month.

But recent analysis this week from West One Loans claimed this was nowhere near enough.

The government will miss its target by eight years at the current rate of building, its analysis said. Approximately 370,000 homes need to be built each year to meet the target.

One year on, Newspage spoke to experts who were not surprised that the targets were not met.

They urge Labour to cut through the red tape, boost skills and offer incentives.

Pete Mugleston, Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk, said he “wouldn't bet his house” on Labour being able to hit its target.

He added: "Labour's goal to build 1.5million homes by the end of 2029 was ambitious when they took office last year. Why governments continually over-estimate their ability to deliver housebuilding is beyond our pay grade, but it was too big a number then and it's too big a number now. 

"They were elected on the back of this bold promise, and unless they can pull a rabbit out of a hat, they're going to struggle to achieve it. The country desperately needs new homes to meet demand. Dreams of leaving the rental market and buying a first property will have been the motivating factor for many at the ballot box. 

“They were always going to have to make changes before they saw an increase in supply, and it does look like some developers are putting out more volume than before. Will it provide the government with the momentum they need to claw back lost ground and hit the target? I wouldn’t bet my house on it!”

Kundan Bhaduri, Entrepreneur at The Kushman Group, added: "Twelve months on from Labour’s landslide and its pledge to build 1.5million homes by 2029, that promise already looks like it’s joining HS2’s northern leg in the graveyard of political fantasy. 

"At the current pace, they’re on track to miss the target by a full eight years into a second term they won't get. That’s not ‘backing the builders’, that’s backing away slowly with a nervous smile. 

"To meet their headline figure, we’d need to be delivering 370,000 homes per year. In reality we barely managed 36,000 last year. The usual culprits remain, a planning system slower than a Kent parish council AGM, relentless local opposition, and a glaring shortage of skilled labour that no amount of ministerial rebranding will paper over. 

“If Labour genuinely intends to fix the housing crisis, they’ll need to do more than quote targets at podiums. Slash red tape, streamline planning, and unleash private capital. Because right now, all they’re building is disappointment, brick by missing brick.”

Rob Peters, Principal at Simple Fast Mortgage, believes the eight-year figure could even be an underestimation.

He said: “A multi-story of hopes & dreams built on a foundation of empty rhetoric. At the current build rate, they’ll miss their target by nearly a decade and that’s before you factor in planning delays, material shortages, and rising build costs. 

"1.5million homes sounds great on a podium, but on the ground it’s just another broken promise leaving buyers and renters trapped in a difficult to access market.”

Harry Goodliffe, Director at HTG Mortgages, said “Labour’s big housing promise is already crumbling”. 

He added: "A year on and they’re way off track. At the current pace, they’ll miss the 1.5million homes target by nearly a decade. The planning system’s still stalled, builders can’t find enough workers, and developers aren’t convinced the market’s worth the risk. 

“If Labour really wants to deliver, they need to cut through the red tape, boost skills, offer incentives and stop just talking a big game.”

Michelle Lawson, Director at Lawson Financial, commented: "Not one housebuilding target has been met and they have all been too ambitious gunning for votes and nothing but hot air and broken promises. 

"I don't think there are any shocks that they will be way off the mark as this was said when it was announced in the first place. This is why politicians lose so much public trust- they over promise and under deliver rather than be realistic."

Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, said: “These new houses are badly needed but if it were easy, previous governments would have done it. The main issues are planning and available tradespeople. The government has made a lot of noise about the planning system but it will take time to show any results but even if they get schemes approved, are there the builders to build them? It's going to be a tall order for the government to suceed here but we must hope they do.”

Tony Redondo, Founder at Cosmos Currency Exchange, said: “A year after Labour’s 2024 election win, their “back the builders, not the blockers” rhetoric and pledge to build 1.5million homes by 2029 is coming up woefully short, with only 150,000 homes on track for 2025, far below the 370,000 needed annually. 

"Planning reforms, £5B investment, and a “new homes accelerator” show intent, but this year’s planning approvals have hit a 2006 low. The construction industry is sceptical, citing 250,000 worker shortages, planning delays, and weak demand and last year’s budget combo of employers’ NICs and national minimum wage increases has hurt the sector badly, as can be evidenced from recent PMI and insolvency data. 

“To succeed, Labour must boost training, streamline planning, support SMEs, and spur demand by growing the economy.”