Housing Minister Matthew Pennycook has described Britain’s housing situation as an “acute and entrenched crisis”, signalling the government’s intention to expand council house construction significantly.
Speaking on BBC Radio 4’s Today Programme, Pennycook acknowledged the government needed to “do more” to address housing shortages but declined to provide specific timelines for new construction projects, stating delivery would depend on individual providers.
Council housing programme
The minister highlighted that 64,000 new council homes were delivered last year, marking the highest annual rate since 2014-2015. He attributed the decline in council housing to the Right to Buy scheme introduced in the 1980s.
“Council house building fell off a cliff in the 1980s due to Right to Buy. We have done a lot to reinvigorate council house building but we have got to do more,” Pennycook said.
The government is allocating funding through a £39 billion Social and Affordable Housing Programme, which Pennycook said would help private market sites “build out and get things moving”.
The announcement comes as landlords face mounting tax concerns in the private rental sector, potentially affecting housing supply across different market segments.
1.5 million homes target
Regarding the government’s target to build 1.5 million homes, Pennycook described it as a “stretching target”. His comments follow Deputy Prime Minister Angela Rayner’s appearance on the same programme earlier this month, where she compared achieving the target to “running the marathon in under five hours”.
“I’m straight-talking, 1.5 million homes is a difficult target. I made the target. But I’m going to keep the target and I’m not going to be defeated,” Rayner said.
The minister emphasised that housing targets remain in place and have an “important role” in addressing the crisis. “Funding is going out through the door. It will see homes delivered,” he stated.
The government’s focus on social housing comes amid broader challenges in the property sector, including local councils considering additional taxation measures to address housing availability.
The council housing drive represents the most significant push for social housing construction since rates declined in the early 1980s, according to the Prime Minister’s stated objectives. However, the lack of specific construction timelines may create uncertainty for developers and housing associations planning future projects.
