Shock data reveals housebuilding has hit ten-year low
Despite the Government’s pledge to build 1.5 million new homes, house building numbers have fallen since they came to power.
Llatest official figures suggest the Government is nowhere near fulfilling its 1.5 million new homes pledge, with the number being built down 8% compared to the previous 12 months.
To achieve its target, the Government must build around 300,000 homes per year for the next five years. So far, they have built just 201,000, which is a third less than what is needed and nearly 20% below their most recent peak in 2022 (243,000).
The numbers are based on EPCs granted for new dwellings, which are a key indicator of newbuild activity.
The early signs are not good and this should be a major cause for concern in the Treasury.”
Having struggled to deliver on many of their election pledges, Adam Smith, a former adviser to ex-Chancellor Jeremy Hunt, has told the Telegraph that boosting construction is crucial to the Government’s economic and political success. He notes, though, that the construction levies introduced under the Conservatives may not be helping.
“The early signs are not good,” he says, “and this should be a major cause for concern in the Treasury.”
“Instead of a housebuilding boom that delivers the economic growth that the Chancellor has promised, we are going to see the sector limp along like the rest of the economy because this government simply doesn’t understand that tax and regulation matter.”
Government insist it will still hit target
A spokesman for the Ministry of Housing, Communities and Local Government, which produces the EPC figures, has, though, insisted that the Government will still hit its building target and blames the poor initial growth rate on the Tories.
“The Government inherited an acute and entrenched housing crisis, but through our Plan for Change, we will deliver our stretching target of 1.5 million homes and restore the dream of homeownership.”
“We have already taken action to get Britain building, including by overhauling the National Planning Policy Framework, driving forward our landmark Planning and Infrastructure Bill and levelling the playing field for smaller housebuilders.”
