Would achieving 1.5m new homes built during this parliament mean cheaper house prices?

One and a half million new homes: a target as bold as it is daunting. Sir Keir Starmer’s vision of 'shovels in the ground and cranes in the sky' is a rallying cry to tackle Britain’s housing crisis, but industry leaders, like Barratt Redrow’s David Thomas, warn of the hurdles—skills shortages, an ageing workforce, and Brexit—to name a few.

If Labour achieves this lofty goal, though, what does it mean for the average buyer? Will house prices finally edge closer to earth, or does this ambition simply plaster over deeper cracks in the market? The answers may determine whether this promise builds hope—or just another headline.

Increased supply of houses would, at the very least, stabilise house prices, and quite possibly help reduce them. But there are many variables at play, mortgage costs, immigration levels, demographic changes etc, that make it difficult to predict the overall effect with any confidence. The type of property built is vital. What we really need is a massive increase in social house building offered to tenants at below market rents. Combined with scrapping the Right to Buy it could make a real difference to homelessness and the cost of living for those on low incomes.

Keir Starmer’s plans to build 1.5 million homes are certaintly ambitious and could significantly impact the housing market, however sadly we're dubious that they will be achieved.

If these homes are built in areas of high demand, such as London and the South East, they might help stabilise prices, but a dramatic nationwide house price reduction is unlikely.

Beyond affordability, the plan could bring benefits in terms of more housing options for renters by potentially easing rental costs and offering greater choice for tenants. For many renters, who are often the most affected by housing shortages, this could provide some much-needed relief.

However to deliver on this vision Labour would need to address challenges such as the skills shortage, aging workforce and infrastructure demands. This isn’t just about building houses, it’s about creating vibrant and sustainble communities with the infastructure like schools, transport and healthcare facilities needed to support them.

Keir Starmer’s pledge to build 1.5 million homes is ambitious but faces hurdles like skills shortages, an ageing workforce, and Brexit-related challenges, as noted by Barratt Redrow CEO David Thomas.

If realised, the impact could extend beyond affordability. A surge in supply may temper house price growth, especially in areas of oversupply, potentially lowering the value of surrounding properties. This could benefit first-time buyers but might concern existing homeowners. Stamp duty relief changes and harsher landlord taxes could further increase the volume of properties on the market, amplifying downward pressure on prices.

However, such rapid building risks impacting quality if insufficient government oversight and support are provided. Poor planning could also lead to imbalances, where new homes don’t match local demand. Without targeted efforts, affordability gains might be offset by reduced housing standards or misaligned priorities, leaving buyers with more choices but fewer ge

Building 1.5 million homes is a bold goal, but as a property investor, I know it’s not just about numbers—it’s about building in the right places and making homes affordable. If these properties aren’t near jobs or transport, or if they’re priced out of reach, they won’t fix the housing crisis. Developers also face major challenges like skills shortages and rising costs, which could slow progress. That said, if done right, this could ease pressure on house prices and rents, create jobs, and bring more balance to the market. It’s ambitious, but the potential rewards are worth it.