UK housebuilding output declined in the first quarter of 2025, raising further questions about the government’s target to deliver 1.5 million new homes by 2029.
Private housebuilding fell 6.3% in the three months to January 2025, according to the latest Office for National Statistics (ONS) data.
Planning reforms introduced
Housing Secretary Steve Reed, appointed in September, stated his housing approach would be “build baby build”. Both Reed and his predecessor Angela Rayner maintained the 1.5 million target was achievable, describing it as a “stretch target”, with Prime Minister Keir Starmer calling it “ambitious”.
The government has introduced measures to accelerate the planning process and increase housing development approvals. Emergency reforms agreed between Reed and London Mayor Sadiq Khan relaxed affordable housing and design requirements in the capital to boost construction.
Parliamentary scrutiny intensifies
In November, the Housing, Communities and Local Government Committee called on ministers to either publish detailed delivery plans or make a parliamentary statement acknowledging uncertainty about projected housing numbers.
Housing minister Matthew Pennycook told the House of Commons that the 1.5 million homes plan would likely impact property prices, with the “best scenario” being a “levelling-off” in house price growth.
Market implications
The ONS figures represent the latest quarterly data available and indicate a widening gap between current construction rates and the levels required to meet the government’s five-year target. The decline in private housebuilding comes despite policy changes aimed at streamlining development approvals.
The government has not yet published a detailed breakdown of how the 1.5 million target will be achieved across different regions or housing types.
