The annual supply of new homes in England has collapsed to its lowest point in almost a decade, according to official government statistics, creating a major challenge for ministers who have pledged to build 1.5 million properties.
A Sharp Decline in Housing Delivery
Fresh data from the Ministry of Housing, Communities and Local Government (MHCLG) reveals that only 208,600 new dwellings were added to England's housing stock in the 2024/25 financial year. This marks a significant 6% decrease from the 221,409 homes supplied in the previous twelve-month period.
The breakdown of these figures shows that the majority, 190,602, were new build properties. A further 17,708 homes came from converting non-domestic buildings to residential use, while 3,846 were created from conversions between houses and flats. The data also accounted for 1,076 other dwellings like caravans and houseboats, and accounted for 4,632 demolitions.
Missing the Target by a Wide Margin
This annual total of 208,600 net additional dwellings represents the weakest performance for the English housing market since 2015/16, when the figure stood at 195,534. The measure of 'net additional dwellings' is considered the primary and most comprehensive indicator of total housing supply, as it is based on local authority estimates of housing gains and losses.
The government's ambitious pledge is to deliver 1.5 million new homes in England over the course of the current parliament, which is scheduled to run until the summer of 2029. To hit this target, an average of 300,000 homes per year would need to be built.
The Uphill Battle for Housing Supply
The scale of the challenge is further highlighted by separate MHCLG figures. These indicate that from the start of the current parliament on 9th July 2024, 275,600 new homes have been delivered. For the current financial year, covering 1st April to 9th November, the number stands at 124,800.
The contrast with recent history is stark. The annual total for new homes peaked at 248,591 in 2019/20, which was the highest number recorded in any financial year so far this century. The current slump to a near-decade low places the government's long-term housing strategy under intense scrutiny and raises serious questions about its ability to fulfil its manifesto commitment on housebuilding.
