The figures, which show an alarming slump in new built homes, cast doubt on Labour’s pledge to build 1.5 million homes during the next five years.

In the King’s speech, Labour reaffirmed its election pledge to build 1.5 million homes but new data from NHBC has questioned the reality of its aims.

While Labour’s attempts to kick-start a new built homes boom have been lauded, the latest data from NHBC reveals the mountain it must climb to achieve its ambitions. Lack of stock has pushed up prices, restricted choice and reduced homeownership.

Just 29,281 new homes were registered in Q2 2024, a fall of 23% when compared to the same period in 2023 and a long way short of Labour’s target.

Decline

According to official figures, the last time government hit the required levels was back in the 60s when local authorities were in the midst of a social housebuilding programme.Decline

Steve Wood, CEO at NHBC comments: “Scaling up will take time but we can be encouraged by the Government’s announcements on new home-buyer incentives, changes to the planning system and investment in infrastructure, including power grids, water supply and roads”.

But it remains to be seen whether developers would want to flood the market with new houses, as the sudden increase in supply would be likely to exert significant downward pressure on prices.

As Wood goes on to explain there is also the issue of an ageing workforce and a lack of skilled workers in the construction industry, which could also slow down Labour’s plans.

NHBC is the UK’s leading independent provider of warranty and insurance for new-build homes.

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