Labour's 'laughable' 1.5m homes target branded 'pipe dream' after construction slump

Labour's target of building 1.5m new homes in the current administration will not be achieved, property experts have said, following the 0.6% contraction in the construction sector in May. Scott Gallacher, director at Rowley Turton, said: "The 1.5m homes pledge is looking like a pipe dream."

Stephen Perkins, managing director at Yellow Brick Mortgages, was even more blunt, saying the target will not be met in this political term. He said: "Despite all the talk from this Government about getting Britain building again, the reality is that the construction sector itself is slowly being demolished. So far, there are no credible plans on which to lay the foundations of growth within the housebuilding sector. The 1.5 million new homes target certainly won't be achieved in this political term."

Adam Stiles, managing director at Helix Financial Partners, said the goal is now looking increasingly "laughable".

He said: "This latest construction data, showing the sector contracting by 0.6%, contradicts all the rhetoric surrounding housebuilding coming from the Government. The goal of 1.5m was always laughable, and it's even more so now."

Babek Ismayil, founder at homebuying platform OneDome, said the Government now has an Everest to climb.

He said: "The goal was always optimistic, and that, based on this latest construction data, is what it's proving to be. The Government now has an Everest to climb if it wants to meet its 1.5m homes target."

Harry Goodliffe, director at HTG Mortgages, said: "This drop in construction output is a palpable reality check for Labour's 1.5 million homes pledge. You can't just throw out a big number and hope the industry magically delivers, especially when nothing's been done to fix the planning system or support smaller developers.

"If Labour were serious, we'd already be seeing bold moves, not business as usual."

Rob Mansfield, independent financial adviser at Rootes Wealth Management, said the so-called magical target was "a long way off".

He said: "The target is ambitious and it has to be, but the longer it's left, the harder it gets. It's like chasing a run rate in cricket - a few poor overs and the number required jumps up.

"What would be good to see is a sustained increase in housing starts, but they're currently below pre-pandemic levels. The magical target seems a long way off at this point."

Labour has pledged to deliver 1.5 million new homes over the course of the current Parliament - the equivalent of 300,000 a year - as part of what it has called a "once-in-a-generation overhaul" of the planning system.

Speaking at the UK Real Estate and Infrastructure Investment Forum (UKREiiF) in Leeds on May 20, Deputy Prime Minister Angela Rayner defended the ambition and set out the scale of Labour's plans.

She said: "The message from this Government is clear: we are not wasting a single day in delivering our mission to get Britain building again.

"We will build the homes that local people need and can afford - and we will do it in the right places with the infrastructure that communities need."

She also acknowledged the size of the challenge: "We have a target to build 1.5 million homes this Parliament... I know that target is stretching... But I won't shy away from the challenge... These must be welldesigned, decent homes for local people. And they must come alongside the GP surgeries, schools and parks they need too."

Labour has promised to introduce a new Planning and Infrastructure Bill that will unlock major developments, reform compulsory purchase rules, and update the National Planning Policy Framework.

Councils would be required to draw up and maintain local plans, and restrictions on building on the green belt would be eased to allow for the creation of "grey belt" developments where appropriate.