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Housebuilders warn OBR that Labor will struggle to meet target of 1.5 million homes

KANIKA SINGH RATHORE, 29/10/202529/10/2025

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Government will fail to complete it Target to build 1.5 million houses Home builders warn in a letter by the end of the decade Budget Sentinel – The latest blow for Rachel Reeves ahead of what is expected to be a tough budget in November.

in a letter to Office of Budget Responsibility (OBR), The Home Builders Federation (HBF) – the representative body of the home building industry in England and Wales – said its forecasts for economic growth from house building were too optimistic.

The organisation’s chief executive, Neil Jefferson, said the OBR numbers would only be achieved if ministers provided more support. first time buyers Tax cuts were planned to stimulate demand and on new homes, which he said were making many sites “unviable”.

He said: “The OBR’s forecasts for housing supply were ambitious. These numbers can only be achieved in the right policy environment.”

construction of new houses

construction of new houses ,pa wire,

Private Alert, viewed by many timesThe watchdog is likely to hurt its prospects by upgrading its forecast for economic growth from construction. In the worst case, it may even result in a downgrade.

In his manifesto, Labor promises to start work on 1.5 million new homes During the Parliament, expanding home ownership to more Britons. But home builders have There have been repeated warnings over the pledge, arguing that it is too ambitious.

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MP Chris Curtice, chair of the Labor Growth Group, said his party was “at risk of not achieving our targets because the recovery is too slow”.

“The House of Lords is blocking legislation and the government is not strong enough to stand up to the opposition,” he said. many times,

“That is why we need to move forward now by reforming the building safety regulator, fixing the broken approach to nature regulation and moving forward quickly with the New Towns programme.”

It came as the Chancellor insisted Britain does not need to “accept” dire economic forecasts, despite reports it faces fiscal bad news ahead of next month’s budget.

I am writing GuardianMs Reeves acknowledged the Office for Budget Responsibility (OBR) productivity forecasts could be hard to read.

And he argued that austerity, Brexit and the pandemic have left “deep scars” on the UK economy.

But she said she was “determined that we don’t just accept the forecasts but we defy them” and “will not repeat the past or let the mistakes of the past determine our future”.

Her comments come as she prepares to present a budget next month that is widely expected to include massive tax rises as she looks to plug a billion-pound gap in her plans.

A government spokesperson said: “We will leave no stone unturned to build the 1.5 million homes this country so desperately needs and restore the dream of home ownership.

“Having already introduced major planning changes to enable developers to build on our huge £39bn investment in social and affordable housing, we are moving even further to accelerate the reforms and deliver the biggest era of housebuilding in our country’s history.”

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Uk homesHousebuilderslabormeetmillionOBRstruggletargetwarn

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