Labour Government's Housing Pledge: How is it going?

The Labour Government's pledge to build 1.5 million new homes within its first five years in power was always going to be a bold and ambitious plan to address the UK's housing crisis.

This article explores the key aspects of this pledge, the progress that is being made since the new government took office eight months ago, and the challenges that lie ahead.

What was the pledge?

In its manifesto, Labour made a commitment to build 1.5 million new homes within its first five years in office.  This was intended as a significant step towards alleviating the housing shortage in the UK.  

The plan included a focus on affordable housing, first-time buyers, and the development of new towns with modern infrastructure.  The government's intention to create "beautiful cities" and "prosperous towns" reflects a holistic approach to urban development.

How is it progressing so far?

Since the election in July 2024, the government has taken steps to speed up the planning process and to fast-track land acquisition for housebuilding.  These include:

• Mandatory Housing Targets: The National Planning Policy Framework (NPPF) has been updated to include new immediate mandatory housing targets and requirements to prioritize lower quality 'grey belt' land if unable to meet these targets.
• Compulsory Purchase Orders: The government has introduced legislation to accelerate CPOs.
• Overhaul of Local Plans:  The government has confirmed an overhaul of local plans, with a clear expectation for them to be made within two-and-a-half years, as opposed to the current average of seven years.  This includes regular assessments to help Local Authorities to stay on track towards meeting their targets and using digital tools to increase transparency on available land for new development.
• Streamlined Planning Committees: Labour plans to introduce a national scheme of delegation, allowing applications that comply with local development plans to bypass planning committees entirely.  This measure aims to tackle chronic uncertainty and delays in the approval process.
• Increased Funding for Planners:  An additional £4.5 million has been allocated to fund salary bursaries for new planning roles in Local Authorities, with the ambition of surpassing the government's manifesto commitment of 300 extra planners by the end of next year.

The government has also announced an overhaul of the planning system, with new mandatory targets for Local Authorities and a review of greenbelt to identify "grey-belt" land for development.

Despite these efforts, the Daily Express reported last month that housebuilding activity has fallen to its lowest level in a year, with significant regional disparities in completion rates.

Additionally, no significant new funding has been announced for social housing construction, although (as Prodo Insights reported in its Housing Hive blog in February 2025) an emergency £200 million fund has been allocated to tackle homelessness.

Overall, whilst Labour has taken steps to address the housing crisis, significant challenges and delays persist.

What are the challenges ahead?

1. Skilled Labour Shortage:  One of the primary challenges is the shortage of skilled workers in the construction industry.  The i reported in February 2025 that the Home Builders Federation (HBF) and the Construction Industry Training Board (CITB) estimate that an additional 25,000 bricklayers, 3,000 plumbers, 4,000 plasterers, 10,000 carpenters, and 3,000 electricians will be needed to meet the target.  Training new apprentices is crucial, but it may not be sufficient to bridge the gap in the short term.
2. Planning System Bottlenecks:  The inefficiency of the planning system is another significant hurdle.  Securing planning permission is often a lengthy and complex process, which can delay construction projects.  The government intends that some of its proposed steps highlighted above will go some way to expediting the approval process; but only time will tell.
3. Economic Stability:  The UK's economic stability plays a crucial role in the success of the housing pledge.  High inflation rates and potential economic downturns could impact the construction industry's ability to meet the ambitious targets.
4. Ageing Workforce:  As noted in the same i article, the construction industry is grappling with an aging workforce, with over 20% of workers over the age of 50 and due to retire within the next decade.  This demographic challenge further exacerbates the skilled labour shortage.

What does this mean for you?

The Labour Government's pledge to build 1.5 million new homes is a commendable and necessary step towards addressing the UK's housing crisis. However, significant challenges lie ahead, including skilled labour shortages, planning system inefficiencies, economic stability, and an ageing workforce.  The proposed relaxation of planning approval processes is a positive move, but its success will depend on effective implementation and collaboration between the government, local authorities, and the construction industry.