England's housebuilding sector has suffered a significant setback, with the number of new homes created plunging to its lowest level in nearly a decade. This decline presents a major challenge to the Labour government's ambitious manifesto commitment to oversee a housebuilding revolution across the country.
A Stark Contrast to Political Promises
Official statistics from the Ministry of Housing, Communities and Local Government (MHCLG) paint a concerning picture. In the 2024/25 financial year, just 208,600 new homes were created in England. This represents a 6 per cent decrease from the 221,409 homes supplied in the previous year and marks the lowest annual figure since 2015/16, when 195,534 additional dwellings were recorded.
This data arrives as a direct contradiction to the Labour government's central housing pledge. Prime Minister Keir Starmer promised to build 1.5 million new homes over the course of the current parliament, which is scheduled to run until the summer of 2029. To meet this target, an average of 300,000 new homes would need to be constructed each year, a rate far exceeding the current output.
Political Blame Game Intensifies
The disappointing figures have ignited a fierce political debate. Housing Secretary Steve Reed acknowledged the severity of the situation, stating the statistics reveal "the extent of the housing crisis" inherited from the previous Conservative administration. He blamed a planning system that he said blocked development rather than facilitated it, coupled with high inflation and soaring construction costs.
Mr Reed defended the government's target, insisting that the 1.5 million homes goal was "not just a number – it’s a way to give children a secure home, for young people finally to move out and enjoy independence, and for working families to have place to call their own."
However, the Conservative opposition was quick to criticise. Sir James Cleverly, the shadow housing secretary, labelled Labour's record on housing as "abysmal". He pointed out that the number of new builds has fallen to a level "below what the Conservatives achieved during a global pandemic" and declared Labour's flagship target "dead in the water".
Breaking Down the Housing Supply Numbers
The government's official measure, known as "net additional dwellings", provides a comprehensive view of housing supply. The total of 208,600 homes for 2024/25 was comprised of:
- 190,602 brand new builds
- 17,708 properties converted from non-domestic use
- 3,846 conversions between houses and flats
- A further 1,076 other dwellings, such as caravans and houseboats
This total also accounts for 4,632 demolitions that occurred during the period. The data underscores the immense scale of the task ahead for the government. Separate figures indicate that from the start of the current parliament on 9 July 2024 until 9 November 2025, 275,600 new homes have been delivered. To stay on track for its five-year goal, the government will need to dramatically accelerate the pace of construction, a formidable challenge in the current economic climate.
