During its first year, the Labour government delivered approximately 186,600 net additional homes in England, falling short of its target of 300,000 homes annually. Affordable housing made up a significant portion of completions, with 79% of housing starts reported as affordable. However, the government is 113,400 homes short of its annual goal, largely due to a decline in planning approvals, weak market demand, and skills shortages in the construction sector. Planning permissions reached a low not seen since 2012, posing a risk to the government's housebuilding ambitions.
Between July 9, 2024, and June 15, 2025, an estimated 186,600 net additional homes were delivered in England, significantly short of the government's targets.
The government is 113,400 homes short of its annual target of 300,000 due to a sharp drop in planning approvals and weak market demand.
Just 39,170 homes were granted planning permission in Q1 2025, the lowest figure since 2012, indicating significant challenges in housing delivery.
39% of the starts were affordable homes, showcasing a focus on providing attainable living options despite overall shortfall in housing construction.
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