Government behind on 1.5M home target, is completion possible?

The Government is falling drastically short of its target to see 1.5million homes built by 2029, the latest official figures suggest. Only 38,780 new homes were completed between January and March this year, according to the Office for National Statistics – just over half the amount needed in every three-month period to meet the target. Meeting the 2029 goal would require around 300,000 homes to be completed each year, or 75,000 every three months.

The number built during the first three months of this year leaves it more than 36,000 below the required run rate. In fact, since the government came into power at the start of July, a total of 129,510 homes have been completed, according to the ONS figures. That’s over a nine month period between July 2024 and March 2025. The news will come as little surprise to many experts across the property industry, with many having predicted the Government will fall woefully short of its target.

In a recent interview with This is Money, Richard Donnell, executive director at Zoopla said it was very unlikely the Government would deliver 1.5million homes over this parliament. ‘Planning reforms and more money is great news, but builders are concerned about the demand for homes,’ says Donnell. ‘They are pushing for the return of a Help to Buy-type equity loan scheme. We’re only going to build more homes if we build a range of tenures and price points to enable more buyers to buy and to get more homes for rent – both private and social.’

Rob Dix, co-founder of property advice website Property Hub also views the 1.5million target as a distant pipe dream. ‘No government in living memory has ever hit its home building target,’ said Dix. ‘With so little social housing being built, it’s not something the government realistically has control over.’ However, there are those that do feel it is possible if the Government changes its tactics.

Ross Dalzell, managing director of property at the bank Aldermore is calling for more use of modern methods of construction. This includes homes assembled and mass produced in factories, which can be faster than normal building. ‘This could significantly accelerate delivery, with up to 50 per cent fewer workers needed but does require a different skill set,’ said Dalzell. ‘We need a national strategy and warranty scheme, backed by the Government.’

Dalzell is also calling for the Government to offer more incentives to small and medium-sized developers to encourage them to build more. He cited the recently confirmed £100million in SME accelerator loans and new National Housing Delivery Fund as initiatives that are helping. ‘SME developers must be at the heart of delivering the 1.5 million homes target,’ Dalzell says. 

‘The ONS data shows that the Government has fallen short of meeting its 75,000 quarterly housebuilding target. While the commitment to build 1.5 million homes over the next Parliament is ambitious, it is achievable – but only with bold action at all stages of the housebuilding cycle.’