Research Shows Labour’s Housebuilding Targets are Unrealistic

By the Editorial Team · Thursday, July 30, 2026

Labour’s plan to build 1.5 million new homes by the end of the parliamentary term requires doubling the current daily construction rate from about 547 to over 1,000 homes, a target that recent analysis finds highly unlikely to be met. Rising costs, weak buyer demand, and policy uncertainties are posing major obstacles to achieving this goal despite Labour’s continued commitment.

Labour’s target to build 1.5 million new homes by the end of the current parliamentary term faces significant challenges, according to recent analysis. Data from the Land Value Calculator (LVC) indicates that construction would need to nearly double its current daily output to meet the ambitious goal. While approximately 547 homes are being completed each day at present, hitting the Labour pledge would require building more than 1,000 homes daily.

The target was set as part of Labour’s election manifesto, with Andy Burnham promising to launch the largest council house-building programme in decades. However, LVC research highlights a substantial shortfall, noting that in the best year on record—2020—just 679 homes were built per day on average. To meet the target, housebuilders would have to sustain a markedly higher pace of construction—about 367,700 homes annually—for the next three years.

A spokesperson for LVC emphasized that no independent analysts currently believe the government is on track to achieve this target. While new housing starts have increased by 43 percent from their low point in mid-2024, totaling around 130,170 annually, this figure remains about 25 percent below 2023 levels and still trails behind the current rate of housing completions. The spokesperson also noted that changes in government leadership would not affect the fundamental scale of the challenge.

Angela Rayner, reappointed as Housing Secretary, has acknowledged the difficulty of the 1.5 million-home objective. Speaking recently, she described the target as a “really difficult stretch” that has become even more challenging due to rising construction costs. Despite these hurdles, Rayner affirmed Labour’s commitment to the goal, stating she is “not dropping it.” She highlighted that factors such as increased building expenses have had a significant negative impact on delivery rates.

The housebuilding sector is contending with weak buyer demand, driven by a shrinking pool of prospective homeowners. This decline is largely attributed to policy changes including adjustments to the Help to Buy scheme and higher stamp duty surcharges, which have reduced affordability. Additionally, persistently high mortgage rates—resulting from multiple inflationary shocks linked to the COVID-19 pandemic and geopolitical conflicts—have further constrained the market.

Political uncertainty has compounded these challenges. Burnham’s indication of potential reforms to council tax for homeowners has added to market volatility, complicating planning for developers and buyers alike.

Efforts to increase housing supply will need to address these economic and policy barriers to make progress towards Labour’s housing ambitions. The Ministry of Housing, Communities and Local Government has been approached for comment but has yet to respond.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.