Government’s progress towards 1.5 million new homes

New figures showing the increase in England’s housing supply since Labour came to power indicate the government still has major inroads to make if it is to even come close to its 1.5 million new homes target during this Parliament.

EPC registrations data⁽¹⁾, which provide a proxy estimate of new build completions, show around 342,100 net additional homes were delivered in England between 9 July 2024, when the current Parliament opened, and 15 March 2026.

More positively, the latest building control data show the number of dwellings where building work has started on site was 37,300 (seasonally adjusted) between 1 October 2025 and 31 December 2025 – a 23% increase on the previous quarter, and a 24% increase on the same quarter in the previous year. The Ministry of Housing, Communities & Local Government (MHCLG) cited the higher number of starts being in part due to reforms at the Building Safety Regulator to accelerate housebuilding.

Dr David Crosthwaite, chief economist at BCIS, said: “While the latest figures from the government point to an uptick in activity at the end of last year, they should be interpreted with some caution. Part of the increase in starts appears to reflect changes at the Building Safety Regulator, with previously delayed schemes now progressing. That is not the same as a broad-based increase in underlying housing delivery, and it is important to distinguish between pent-up activity coming through and a sustained improvement in output.

“Based on current estimates, around 342,100 homes have been delivered in England since the start of this Parliament. That represents just under a quarter of the government’s 1.5 million homes target, while roughly a third of the parliamentary term has already elapsed. In simple terms, delivery is not yet keeping pace with the trajectory required to meet the target.

“The latest decision by the Bank of England’s Monetary Policy Committee to hold the base rate reinforces the more cautious outlook. Prior to the escalation of conflict in the Middle East, there had been an expectation of further rate cuts to support activity. That has now shifted, with volatility in energy markets increasing the risk of more persistent inflation and delaying any further easing in monetary policy.

“The challenge of sustaining a higher rate of delivery over time will also be tested by a range of ongoing pressures. Volatility in energy markets is likely to feed through into input cost inflation, particularly for energy-intensive materials. At the same time, upcoming measures such as the Building Safety Levy and the Future Homes Standard, and further increases in landfill tax, are all likely to add to build costs and weigh on scheme viability.”

Estimated net additional dwellings in England (rounded to nearest 100)

^{Source: MHCLG}

On a regional basis, completions in 2025 were up only in the North East (1%) and the East of England (1%). All other regions showed annual decreases, the South East excepted with no change recorded.

Annual starts and completions by English region, year to 31 December 2025

^{Source: MHCLG}

New build dwelling starts and completions data, which lag behind EPC data, give us a picture up to 3Q2025. That dataset shows housing starts in the UK were relatively flat on an annual basis, increasing by just 0.1%, while completions fell to the lowest level since 2014.

Dr Crosthwaite said: “While there are signs that some stalled activity may now be moving forward, the structural barriers to sustained delivery remain, and the scale of the challenge should not be underestimated.”

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⁽¹⁾ GOV.UK – Housing supply: indicators of new supply, England: October to December 2025 – here