As the Labour government marks its first anniversary in office, with housing remaining a central focus of its agenda.
But how are Labour actually getting on with their pledge to build deliver 1.5 million new homes by 2029 and have they bitten off more than they could chew?
We reveal the total number of houses built, break down the types of houses built and see how far they are away from their targets.
Housing delivery in the first year
Between July 9, 2024, and June 15, 2025, an estimated 186,600 net additional homes were delivered in England.
This figure includes completions from various sources, such as Homes England and local authorities. Notably, Homes England reported 38,308 housing starts and 36,872 completions during the 2024/2025 period, with 79% of these starts being affordable homes.
The breakdown of housing types is as follows:
- Affordable Housing: Approximately 36,872 completions, with a significant portion being social rent, intermediate, and affordable rent homes.
- Self-Build Homes: While specific numbers for self-build completions are not detailed in the available data, self-build projects contribute to the overall housing stock, particularly in rural and suburban areas.
- Private New Builds: The majority of completions fall under this category, encompassing market sale homes developed by private builders.
Government over 110k short of its targets
These figures indicate the government is 113,400 homes short of their annual target of 300,000, which has been blamed on a sharp drop in planning approvals, weak market demand, and ongoing skills shortages.
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Just 39,170 homes were granted planning permission in Q1 2025, the lowest figure since 2012 and a 55% fall from the previous quarter, according to the Home Builders Federation. The group warned this collapse could “cripple” Labour’s housebuilding plans.
Housing Secretary Angela Rayner acknowledged the issue, saying: “We need to reform the system to ensure it is sensible and balanced, and does not create unintended delays.”
At the same time, high interest rates and the end of Help to Buy have softened buyer demand, slowing private development. And despite a rise in developer interest, persistent labour shortages – particularly in skilled trades – continue to limit construction capacity.
Government and industry responses
In response to these challenges, the government has committed £39 billion to affordable housing, with 60% allocated to social rent initiatives.
Planning reforms are also underway to streamline approval processes and support housebuilding efforts.
Industry leaders have expressed cautious optimism. Steve Wood, CEO of the National House Building Council (NHBC), noted a 36% increase in developers registering their intent to build new homes in the first quarter of 2025 compared to the same period last year.
However, experts caution that without addressing systemic issues such as planning bottlenecks and workforce shortages, the government’s housing targets may remain out of reach.
Looking ahead
As Labour enters its second year in office, the focus will be on accelerating housing delivery through effective planning reforms, addressing workforce challenges, and ensuring sustained investment in affordable housing.
The coming months will be critical in determining whether the government can meet its housing commitments and alleviate the ongoing housing crisis.
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