Latest NHBC data blows a huge hole in Labour’s housing boom
The figures, which show an alarming slump in new homes being built, 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 housebuilding 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.
There will be an alternative supply of new homes from landlords selling up: most sensible people with a small portfolio are going to exit the PRS once S21 is abolished and the reality of massively overloaded Housing Courts becomes apparent.
If Labour is sensible it will promote SME developers access to land and planning permission, otherwise its whole programme will be dependent on the largest housebuilders, who will expect their kilo of flesh in return for delivering large new developments in the volumes Labour is talking about – which they probably won’t reach because where are the labour force and experienced white collar professionals like QSs, technical coordinators, civil and structural engineers etc going to come from? It’ll be a 10+ year project to build up a large enough housebuilding sector, especially with so many people retiring and so many preferring to survive on benefits than actually work for a living.
We all know the major U.K. house builders cynically manipulate the amount of homes they build to ensure prices are kept high & can be increased at every opportunity. Land banking & ignoring shoddy standards to ensure maximum profits are their sole concern. Governments of all persuasions can bluster on about increasing the supply of homes till they’re blue in the face but the builders answer solely to their shareholders!
NHBs will do what they like to prop up prices / assets. Labour can bluster all they like; they will just look bigger clowns in 4 years time when the total build is about 500,000 over 4 years. With net migration over that period expected to be 2.5 million, watch it all fall more apart 😀