'Slim chance' government will hit 1.5m new homes target, Rayner tells BBC
High construction costs and the Iran war are threatening the key manifesto pledge, the housing secretary says.
Housing Secretary Angela Rayner expressed skepticism about the government's ability to meet its ambitious target of constructing 1.5 million new homes in England by the next election, stating there is only a "slim chance." Speaking to the BBC's Sunday with Laura Kuenssberg, Rayner cited headwinds such as the Iran war and rising construction costs as factors making it challenging to achieve the key Labour manifesto pledge.
Despite the difficulties, she emphasized that the government is still making a difference by investing billions in social and affordable homes. Data up to March indicated the government was falling short of the construction rate required to meet the goal, which housebuilders previously deemed too optimistic. Labour's plan to reach the target by the end of the current parliament, around summer 2029, would require building an average of 300,000 new properties annually, a rate not witnessed in decades.
Rayner maintained that the goal, though a "stretch target," should remain in place and acknowledged it was honest with the public that achieving it would be difficult. The Prime Minister has prioritized council house building, and Rayner noted that house starts increased by 15% last year, indicating progress. Prime Minister Andy Burnham has pledged the largest council house building program since the post-war era, though specific details remain undisclosed.
However, BBC Verify analysis revealed a decline in new home construction during Labour's first year in power, continuing a downward trend that began under the Conservatives. Rayner's predecessor, Steve Reed, previously acknowledged that a surge in construction would be necessary to reach the goal but expected it to be met with the impact of planning reforms.
Analysts believe the government's reforms, including changes to green belt development rules, could aid long-term construction growth. Nevertheless, some argue global conflict, labor shortages since Brexit, and high house prices relative to incomes are hindering construction efforts.
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