It was good to see a bit of positive news in the housing market with figures published by the government last week (20 May) that Homes England has exceeded targets (New figures show thousands more homes delivered across the country as Homes England exceeds targets – GOV.UK).
Homes England (whose role is to support the government’s housing and regeneration agenda) has in working in partnership with other organisations:
- Enabled completion of more than 36,000 homes, up 14% from 2023/2024;
- Facilitated the start of construction for an additional 38,000 homes, up 6% on 2023/2024; and
- Unlocked land capable of delivering 79,000 further homes, up “significantly” (percentage not reported) from 2023/2024
In the past few years, there have been some tough external circumstances which have created a difficult playing field in the housing market, such as unsteady inflation (including build cost inflation for developers), fluctuating interest rates and mortgage rates and financial pressure in the RP market to name a few.
Notwithstanding the difficult economic situation, the government has set a very ambitious target to build 1.5 million homes in this office. The Housing and Planning Minister has commented on how much of a crucial role Homes England has in helping the government to support that.
Does the above information demonstrate that the government has what it takes to deliver 1.5 million homes?
In my view, it doesn’t. There is still a mountain to climb for the government to reach its targets, but this at least a sign of positivity, increased activity and a step in the right direction.
The message seems clear that in order to get anywhere near it, there is a big call for collaboration in the market between the public sector and the private sector to deliver the homes that the country needs.