Rightmove has revealed that the number of new housing developments entering the market has fallen to its lowest level in nearly a decade, dealing a blow to Prime Minister Keir Starmer's pledge to build 1.5 million homes. Data for May shows that new build property listings are at their lowest since May 2017, with construction firms citing delayed projects, reduced budgets, and reluctance to invest as key factors.
Government housing targets under scrutiny
Rightmove's figures suggest the government is significantly behind its housing ambitions, despite introducing measures to accelerate housebuilding and reduce delays. The data raises questions about whether Labour can fulfill its promise of 1.5 million homes during this Parliament. A government spokesperson said: "We're building the homes this country needs and have always said that housing supply will ramp up in the later years of this Parliament as our major reforms begin to bear fruit."
Wider market shows mixed signals
While new developments are at an eight-year low, the wider housing market has seen a rise in available properties. The total number of homes for sale is now 85% higher than in 2022. However, this has not resolved the long-term shortage of affordable homes. Colleen Babcock, property expert at Rightmove, said: "Despite the historically high number of available homes for sale, there is still a long-term shortage of affordable homes in the right place. We need more homes to support people at every stage of the moving journey, from first-time buyers to downsizers."
Industry calls for more support
Britain's largest housebuilder, Barratt Redrow, has called on ministers to offer greater support for first-time buyers. Steve Mariner, sales and marketing director at Barratt Redrow, said: "Increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get on to the housing ladder."
Government response
A spokeswoman for the Ministry of Housing, Communities and Local Government added: "We have already seen a 15% increase in new housing starts compared to last year and our planning changes will help developers weather geopolitical pressures." Despite this, the data underscores the challenge facing the government in meeting its ambitious housing targets.
