One year on: positive first steps, but indicators show the 1.5 million ambition is slipping away
One year after the General Election, the Home Builders Federation (HBF) has released a progress report warning that, despite a positive start, housing delivery continues to fall and is well short of the levels needed to meet Government’s target of 1.5 million new homes.
While early planning reforms have been welcomed by industry, the report finds that broader policy and delivery challenges, particularly on the demand side, remain unresolved and are now seriously constraining the sector’s ability to increase supply.
The report, One Year On: Progress Report on Housing Delivery Since the General Election, scorecards the government in six key policy areas: national planning policy, the planning process, affordable housing, solutions for nutrient and water neutrality, expanding the workforce, and emerging issues impacting the industry, with only one policy area, planning policy, being identified as achieving significant progress.
Forward-looking indicators confirm housing delivery continues to decline. EPC registrations, which reported 205,000 new homes registered in the year to March 2025, compared to 212,000 in the previous year. Additionally, the latest council taxbase data figures released show that in England there was an increase of 213,000 dwellings in the year to September 2024, down on the increase of 237,000 dwellings in the previous year. Planning approvals, which signal future supply levels, have dropped to their lowest point in a decade.
Industry needs more confidence that there is a market for the private homes it delivers. Young people in particular are currently unable to access affordable mortgage lending, artificially suppressing demand and undermining industry’s ability to invest in new sites. It is estimated that a further 100,000 homes could be unlocked if a first-time buyer support scheme were to be introduced.
Supporting the industry to deliver affordable homes must be a major priority for government, with the report identifying that there has been limited or no progress in this area. While government pledges in the Spending Review of funding to support building new affordable homes and a five-year rent settlement for social housing providers are welcome, it will do little in the short term to increase the number of registered providers in the market for the affordable units industry delivers as part of its planning commitments. The report highlights that more than 100,000 private homes and at least 17,000 affordable homes are currently stalled due to a lack of Registered Provider bids for Section 106 homes.
Meanwhile, around 20,000 more are delayed by water neutrality requirements. Many additional schemes are also being held up by wastewater connection issues and electricity grid capacity constraints.
Planning policy has seen the most substantial progress according to the report. The new National Planning Policy Framework (NPPF), the introduction of the grey belt designation, and proposals for strategic planning reform are all welcome steps.
However, the planning process has only seen some progress. Local planning remains costly, slow, and unpredictable, especially for SME house builders. Underfunded local authority departments are a major cause of delays, and while higher fees may help, improved service must follow. Government should now boost planning department resources, standardise Section 106 agreements, adopt clear timelines, set common infrastructure standards, and back SME builders by releasing more land for small sites.
Solutions for nutrient and water neutrality, which is delaying over 180,000 new homes across England are a priority for industry. The Planning and Infrastructure Bill is a welcome step forward, with new measures like the Nature Restoration Levy offering a pathway to unlock development in affected areas. However, urgent clarity is needed, particularly around unresolved water neutrality rules in West Sussex, which continue to stall nearly 20,000 homes.
On emerging issues, HBF also raises concerns about a series of recent and proposed government policy decisions that risk making the situation worse. The proposed Building Safety Levy would impose an additional £3.4bn in costs on an industry that has already committed £6.4bn towards cladding remediation. The decision to proceed with the levy without a full impact assessment will disproportionately affect SME builders and undermine the delivery of affordable homes.
Other new challenges since last year’s General Election include delays in the work of the Building Safety Regulator, new build-out transparency requirements that may deter investment, and a growing burden of tax and regulatory changes that are driving up costs at a time when many sites are already financially unviable. The report also flags early implementation problems with Biodiversity Net Gain, calling for urgent action to strengthen local authority capacity and deliver clearer, standardised guidance across the country.
Expanding the workforce is necessary to achieve the ambitious housing targets and will also boost green jobs and innovation. Government’s recent commitments to construction skills, including new funding and the Growth and Skills Levy, are welcome, but further action is needed. Practical Further Education college training must be prioritised, green skills should be properly funded, and clearer plans are required for consumer protections and faster grid connections to ensure green homes can be delivered at scale.
Looking ahead, the report sets out a practical package of policy measures to get delivery back on track over the remainder of this Parliament. These include a new equity loan scheme to support first-time buyers, interim funding to unlock affordable housing delivery through Section 106, increased resourcing for local planning teams, and a more proportionate and coordinated approach to new regulations.
Neil Jefferson, chief executive at the Home Builders Federation, said: “Over the past year, the Government has made some bold and positive steps to fix the planning system, and these have been welcomed by the industry. But unless ministers act quickly to address the wider constraints blocking delivery, that early progress risks being wasted.”
“From the growing backlog of affordable homes to the lack of demand-side support for buyers, urgent and coordinated action is now needed to get supply back on track.”
“Housebuilding is central to economic growth, opportunity, and social mobility, but that potential is not being realised. If government is serious about hitting its housing target, it must match its ambition on planning with a more radical and joined-up response across the board.”