Housing committee chair warns 1.5 million homes target will be missed if left to private sector alone

The letter reads: “We are deeply concerned to hear media reports in recent days that the Ministry of Housing, Communities and Local Government, as an ‘unprotected’ department, may face significant cuts to its budget next week.

“Whilst we understand the current pressures on the public finances will mean difficult policy decisions are needed, we also note the government’s unwavering commitment to deliver 1.5 million new homes during this parliament – a pledge first made in the Labour manifesto, and reiterated as a milestone of the government’s ‘growth mission’ in its Plan for Change.”

It also highlighted an analysis by the National Housing Federation that shows how a 10-year Affordable Homes Programme, with an average of £4.6bn per year over its first five years, could deliver 320,000 new affordable homes.

The letter to the chancellor addresses the need for a 10-year rent settlement, alongside targeted grant funding to finance repairs and remediation of existing housing stock.

It calls for the need to set a target of 90,000 social rent homes per year to tackle the housing crisis, an ambition that unites much of the sector and is part of Inside Housing’s Build Social campaign.

Ms Eshalomi added: “The failure by successive governments to deliver enough new homes is having a devastating impact on our country.

“Families are waiting for years on social housing waiting lists, and young people are seeing their rent go through the roof while the dream of homeownership fades even further.”

Her concern is not unwarranted as it comes at a time when a recent development report by the G15 group revealed a 66% drop in housing starts by the capital’s largest social landlords since 2022-23.

Just 4,708 new homes were started in 2024-25, down from 13,744 two years earlier.

In the final quarter, there was a 7% drop compared with the same period in 2023-24. Completions also fell, with 9,200 homes handed over in 2024-25, an 11% decline from the previous year’s 10,356.

Following the figures, published in the G15’s first development report for 2024-25, the group called for urgent action on London’s “deepening” housing crisis.