
The government said it had “inherited the worst housing crisis in living memory” and “all areas must play their part”.
It has set out “a major planning overhaul… unblocking barriers to building, and setting out targets for councils to ramp up housebuilding, so new homes are built where they are most needed.”
Most housing experts agree planning reform is necessary, external.
Yet analysts say it is not the only obstacle.
The construction industry has warned it is dealing with a chronic shortage of skilled workers.
The Home Builders Federation has cited aging workers and Brexit as some of the factors behind shortages.
The Construction Industry Training Board estimates, external the sector needs to attract the equivalent of 50,300 extra workers per year to meet the levels of work expected.
There are also concerns about the availability of basic building materials including bricks and timber.
The Construction Leadership Council has warned, external a shortage of these could hinder the government’s ability to get near its target.
Finally, many housing experts doubt, external private housebuilders are capable of delivering enough new homes each year to reach the targets.
This is because private housebuilders have a commercial interest in not building so many new homes that their average price declines.
The Competition and Markets Authority concluded in February 2024, external “private developers produce houses at a rate at which they can be sold without needing to reduce their prices”.
A sharp decline in residential planning permissions in England in the year to June 2024 – hitting a new record low – was due to a collapse in applications from private builders, not a decline in the share of applications being approved by local authorities.
This collapse in applications probably reflected the impact of still-high mortgage interest rates and high house prices relative to average incomes, undermining the ability of people to afford newly built houses.
That’s why some argue, external meeting the government’s targets will also require a major increase in Whitehall grants to not-for-profit local housing associations, enabling them to build tens of thousands of new social and affordable homes, mainly to be rented out, in the coming years.