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research by West One Loan This shows how ambitious the government’s aim to boost UK housing stock may be.
Despite overseeing the increased level of work starting on new homes, it appears Labor still needs 12 years to honor its key manifesto pledge on new-build housing delivery.
during 2024 general electionsThe Labor Party’s manifesto was headlined by an ambitious promise to deliver a net addition of 1.5 million to England’s housing supply during its first five years in power. At the time, it was reported that an average of 370,000 homes should be added to the country’s stock each year, a goal that most commentators immediately dismissed as impossible.
New research from West One Loans shows that one year on, Labour’s progress actually suggests it is already falling well short of its target.
However, the analysis starts with some positive news for Labour. In the 15 months that have passed since the party came to power in July 2024, work has started on a total of 86,000 new homes in England. This represents a significant increase compared to the previous three quarters (Q4 2023 to Q2 2024), when the total initially stood at 68,080.
New construction progress and requirements
When planning your housing goals Government talks in terms of net additionsA term that includes the creation of new dwellings through things such as property conversion and change of use of existing buildings. However, historical data shows that 89.8 percent of net additions come through new-build development.
This means that around 1.35 million new construction can be expected, out of Labor’s overall target of 1.5 million.
Since coming to power, Labor has overseen an average of 28,667 new construction jobs each quarter, equivalent to an average of 114,667 per year.
Continuing at this rate, it will take 11.8 years for the government to meet its new-build target of 1.35 million new homes: a far cry from its five-year manifesto promise, especially after almost a year and a half.
Thomas Cantor, co-head of short-term finance at West One Loans, said, “The Labor government was quick to hang its hat on an ambitious target in relation to housing delivery and, given the consistent failure of previous governments, it was met with considerable skepticism.” “Of course, it is still relatively early days, and Labor may eventually be in the process of laying the initial groundwork needed to pave the way for an explosion in new home deliveries.
“But it is possible that they need time for overhaul plan rules, cut red tape And prepare and encourage the country’s homebuilders to increase production, it seems that the task of fulfilling what was promised is running away from them.
“This will come as little surprise to the industry, which has consistently sought to prop up the market through government intervention in monetary policy. We have not seen enough done in this regard and given the lack of movement with respect to interest rates recently, the concern is that we are not harnessing the full potential of growth activity at a time when it is most needed.”
Full data tables and sources can be viewed online Here.