Put builders on war footing to hit 1.5m new home target in five years, say industry experts
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British housebuilders must be put 'on a war footing' if the industry is to have any hope of developing the 1.5m new homes targeted by Labour within five years, according to industry experts. Hurdles to hitting the 'extremely optimistic' goal set by Keir Starmer include staff shortages, high interest rates, small builders going bust and lack of materials.
Labour has vowed to rip up the 'broken' planning system in the biggest shake up of the rules for a generation so 300,000 homes can be built every year of this Parliament. Deputy Prime Minister Angela Rayner has unveiled plans to allow more homes to be built on green belt land and impose mandatory targets on councils. But the overhaul has faced a backlash from campaigners and local authorities, who said the figures were not achievable.
And experts in the sector said planning rules are not the only major challenge. The UK housebuilding sector has endured a turbulent year as high interest rates deter buyers. Shares across the industry have tumbled in recent months as hopes of a building boom fade.
Labour wants 300,000 homes to be built every year of this Parliament. Bovis Homes owner Vistry - which issued a third profit warning in three months on Christmas Eve following a major accounting blunder - is down more than 60pc. And luxury developer Octagon sounded alarm bells last month when the 45-year-old firm filed an administration notice.
