UK Labour Government Expected to Miss 1.5 Million New Homes Target by 2030, Housebuilders Warn

Housebuilders have warned that the UK government will miss its target of building 1.5 million new homes in England by the end of the decade, posing a significant challenge to Chancellor Rachel Reeves ahead of the upcoming Budget. The Home Builders Federation (HBF) told the Office for Budget Responsibility (OBR) that the watchdog's forecasts for economic growth from housebuilding are overly optimistic due to sluggish demand and higher costs associated with environmental and building safety regulations. HBF's chief executive, Neil Jefferson, emphasized that achieving the target would require more government support for first-time buyers and reductions in taxes that currently make many building sites unviable. Labour's manifesto pledge to build 1.5 million homes faces criticism for being too ambitious, with some MPs acknowledging that slow reforms and legislative obstacles have hampered progress. The OBR's previous forecast of 1.3 million new homes across the UK by 2030 may be downgraded further, complicating Reeves' efforts to plug a growing fiscal shortfall fueled by weaker growth, higher borrowing costs, and inflation. This housing target issue compounds broader economic challenges faced by the government as it prepares for a difficult budget.