New figures from the Office for National Statistics (ONS) detail the progress of new UK housing developments towards the end of 2024. It’s safe to say the results are far from satisfactory.
The main area of disappointment, according to the findings, was the number of projects started. By the end of 2024 housing association starts dropped to 5,830 – the lowest quarterly total of the year. What’s more, councils started just 230 homes in the same period, down 50 on the previous quarter.
As a whole, the total quarterly figures for all starts reduced from 30,750 at the beginning of the year to just 25,440 by the end.
‘By any measure, these are a disappointing set of figures and continue to highlight the massive challenge the government has in delivering 1.5 million new homes within the next four years,’ Paul Rickard, chief executive of developer Pocket Living said. ‘That said, the government set a target of 300,000 homes a year knowing that it wouldn’t be easy. Planning reform is only part of the answer.’
‘With one in three approved homes still unbuilt since 2015 and viability now beyond breaking point, it’s time for policymakers to work with the sector to find real, workable solutions,’ he continued.
While progress on unbuilt homes remains dire, the ONS data reveals the number of completed projects increased in the UK at the end of last year. Councils completed 670 homes which equates to an increase of 270 on the previous quarter.
Meanwhile, the overall number of quarterly completions jumped to 40,860 from 34,010.
If these trends continue, it is believed Labour is likely to provide starts and completions of between 106,000 and 153,000 during its first year in power. This means the party will have to deliver way more than 300,000 homes per year if they are to keep their promise of delivering 1.5 million new homes before the next general election.
In order to make housing projects starts as stable as completions Paul explained the industry needs stronger government intervention.
He said: ‘This must include policies to encourage an SME housebuilding renaissance, maximising opportunities of devolution and Homes England reform, introducing flexibility on affordable tenure, using the forthcoming Spending Review and housing strategy as a major delivery reset moment, and applying a proportionality test for new and existing regulations.’
Photo by Saad Salim via UnSplash
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