Despite a positive start, housing delivery under the government continues to fall “well short” of the levels needed to achieve the 1.5 million target, the Home Builders Federation warns.
In its new report, ‘One Year On: Progress Report on Housing Delivery Since the General Election’, the HBF finds that, while early planning reforms were welcomed by the industry, 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 analyses the government’s performance 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. Only one policy area, planning policy, was identified as achieving significant progress.
The HBF says that forward-looking indicators confirm housing delivery continues to decline. EPC registrations 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.
The HBF says that the housebuilding 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 the 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.
The delivery of affordable homes remains a key issue, with the report finding that there has been limited or no progress since the start of the Parliament despite a number of pledges. The HBF says the announcement of the new Social and Affordable Housing Programme and a five-year rent settlement for social housing providers are welcome, but will do little in the short term to increase the number of registered providers in the market for affordable units.
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 have all been largely welcomed by the industry.
However, the report finds that the planning process has only seen some progress. Local planning remains costly, slow, and unpredictable, especially for SME housebuilders. Underfunded local authority departments are a major cause of delays, and while higher fees may help, improved service must follow. The HBF says that the 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.
The HBF report goes on to highlight the critical need for solutions for nutrient and water neutrality, which is currently delaying over 180,000 new homes across England. It also raises concerns about a series of recent and proposed government policy decisions that risk making the situation worse, most notably the proposed Building Safety Levy which would impose an additional £3.4billion in costs on an industry that has already committed £6.4billion towards cladding remediation.
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 the 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.”
