The UK’s housing crisis has once again taken center stage in the political debate as a former housing minister has issued a stark warning that the government is on track to “massively undershoot” its long-promised housebuilding target. The warning comes amid growing concern from both industry experts and local councils that construction levels have fallen far below what is required to meet the nation’s housing demand.
The minister, who previously oversaw the housing portfolio, criticized the government’s handling of planning reforms and its failure to deliver the promised 300,000 new homes per year — a target first announced several years ago but never achieved. According to the former minister, bureaucratic delays, restrictive local planning policies, and underinvestment in affordable housing have combined to create a “perfect storm” that is pushing home ownership further out of reach for ordinary families.
A Target Slipping Further Away
When the government set its annual target of 300,000 new homes, it was seen as an ambitious but achievable goal. However, current figures paint a different picture. The latest data from the Department for Levelling Up, Housing and Communities (DLUHC) shows that the number of new homes built in England in the past year dropped to around 230,000, marking one of the sharpest slowdowns since 2013.
Industry forecasts suggest that construction output is unlikely to recover soon, as higher interest rates, material shortages, and planning delays continue to plague developers. The former housing minister’s warning reflects widespread concern that unless immediate action is taken, the UK could face a shortfall of nearly one million homes by the end of the decade.
In a statement to the press, the ex-minister said:
“We are not just missing the target — we are miles away from it. The government’s inaction and the lack of urgency around planning reform are leaving an entire generation locked out of homeownership.”
Planning Reform in Limbo
Central to the issue is the government’s ongoing struggle to push through meaningful planning reforms. While ministers have repeatedly pledged to simplify the process for approving new developments, proposed legislation has faced resistance from backbench MPs and local authorities, particularly in rural and suburban areas.
The former housing minister emphasized that the current system is “unfit for purpose,” describing it as overly bureaucratic, inconsistent across councils, and often influenced by local political pressures.
Developers have echoed these concerns, arguing that the planning process can take years before ground is even broken. According to the Home Builders Federation (HBF), the average time between submitting an application and receiving approval has increased by nearly 25% since 2018.
“We can’t build homes fast enough when every planning decision becomes a political battle,” the ex-minister said. “Communities deserve a fair say, but we also need a national commitment to building the homes Britain desperately needs.”
The Rising Cost of Living and Homeownership
The lack of new housing has direct consequences for millions of Britons. House prices have continued to soar in many parts of the UK, particularly in London, the South East, and growing regional hubs like Manchester and Bristol.
According to recent figures from Halifax Bank, the average UK home now costs nearly £290,000, while the average first-time buyer needs a deposit exceeding £60,000. Meanwhile, private rents have risen by over 10% year-on-year, pushing more families into financial strain.
Experts warn that without a steady increase in housing supply, the affordability crisis will only worsen. The former minister warned that this “structural imbalance” between demand and supply is one of the biggest threats to the nation’s long-term economic stability.
“If young people can’t afford to buy or even rent, we are creating a divided society,” he said. “Homeownership is the foundation of financial security, and it’s slipping away from millions.”
Affordable Housing: A Broken Promise
Another key criticism is the lack of investment in affordable housing. Despite repeated government commitments to expand affordable housing stock, the number of new affordable units completed each year remains significantly below target.
Charities such as Shelter and Crisis have been vocal about the government’s failure to deliver homes for those most in need. In 2024 alone, Shelter estimated that over 1.2 million households in England were waiting for social housing, while more than 100,000 households were living in temporary accommodation.
The former housing minister described this as a “national disgrace,” adding that the focus must shift from luxury developments to genuinely affordable homes.
“We cannot keep building penthouses while nurses and teachers can’t afford to live in the communities they serve,” he said. “The government must prioritize affordable, sustainable housing — not just headline numbers.”
Developers and Councils Blame Each Other
The housing shortage has also fueled tension between developers and local councils, with each side blaming the other for delays and bottlenecks.
Developers argue that councils often block new projects due to local opposition, while councils claim developers fail to build quickly even after gaining permission. Data from the Local Government Association (LGA) shows that over one million homes have already been approved but remain unbuilt — a statistic developers dispute, citing infrastructure and cost challenges.
The former housing minister called for a “balanced accountability framework” that ensures councils approve applications promptly and developers follow through without unnecessary delays.
Economic and Social Implications
The housing shortfall doesn’t just affect individuals — it has broad implications for the economy. Limited housing supply restricts labor mobility, as workers are unable to relocate for jobs, and it drives up living costs, which in turn fuels wage inflation.
Businesses in cities like London, Oxford, and Cambridge have warned that housing shortages are making it harder to attract and retain employees. This dynamic threatens productivity and the UK’s broader economic competitiveness.
Economists also point out that the housing market plays a crucial role in consumer confidence. When people can’t afford homes, it dampens spending and long-term investment in the economy.
Calls for Immediate Action
In response to the former minister’s warning, housing charities, developers, and trade groups have joined calls for urgent government intervention. Key recommendations include:
- Simplifying planning rules to accelerate development.
- Expanding public funding for social and affordable housing.
- Incentivizing local councils to approve more projects.
- Reforming land use policies to free up more sites for development.
The Royal Institute of Chartered Surveyors (RICS) also suggested new measures to promote brownfield regeneration — converting unused urban land into residential areas — as a sustainable way to meet housing demand without encroaching on the green belt.
Government’s Response
In response to the criticism, a spokesperson for the Department for Levelling Up, Housing and Communities reiterated that the government remains committed to building “more homes in the right places.”
“We’ve already delivered over 2.5 million homes since 2010,” the spokesperson said. “Our upcoming planning reforms will further streamline the approval process, while protecting local character and the environment.”
However, housing experts argue that the scale of the problem requires a more ambitious, coordinated strategy across all levels of government.
Conclusion
The warning from the former housing minister underscores a growing sense of urgency — and frustration — around the UK’s housing crisis. Despite ambitious pledges and years of political promises, the gap between housing supply and demand continues to widen, leaving millions struggling to find secure, affordable homes.
Unless the government takes decisive action, the UK risks not only missing its 300,000-home target but deepening a crisis that affects every corner of society — from young families and renters to the economy at large.
The message is clear: building homes is not just about numbers — it’s about national stability, fairness, and the future of a generation.
