Jonathan Parker examines the realities and the barriers that could thwart the government’s housing ambitions
Reappointed housing secretary Angela Rayner has reaffirmed the government’s commitment to delivering 1.5 million new homes by 2029.
Yet, with rising costs and market pressures testing the sector, the debate has shifted from political ambition to the practical realities of delivery. Framework provider Pagabo’s white paper, Building 1.5 Million Homes – Is It Achievable?, looks at the chances of achieving that target.
Rayner has said the goal is “challenging”. Meanwhile, insights from respondents to the Pagabo white paper survey representing a broad cross-section of job functions across local government and housing associations reveal a deep-seated pessimism within the housing sector.
Even with significant policy reform that may come under Burnham’s premiership, less than one-third of the housing sector believes the national target for new homes is achievable. When asked if they are satisfied with their organisation’s progress in relation to the delivery of affordable homes compared with the local target since the Labour party entered government, only a fraction over one-third of respondents said yes.
While Rayner emphasises her determination to fulfil the government’s housing commitment, the Pagabo report has revealed a range of barriers that must be addressed if ministers are to accelerate housebuilding at the scale required.
Barriers to housebuilding
The government has agreed sustained investment is needed and the sector is clear: funding remains the biggest obstacle.
With 60% of respondents describing local housing project funding as inadequate or highly inadequate, unlocking delivery will depend on a step change in long-term investment. Meanwhile land cost, site availability and developer profit expectations also present widespread barriers.
As Rayner links delivery to reforms aimed at unlocking stalled sites and encouraging a brownfield first approach, housing professionals adopt a pragmatic stance. With rising remediation costs, 54% of respondents support a balanced approach using both brownfield and green belt sites.
Housing associations prioritise refurbishment, while local authorities place greater emphasis on enabling new development. However, unanimously across the sector, this all must be supported by corresponding investment in social infrastructure – with an overwhelming 79% of all respondents viewing collaboration with other public sector bodies as essential or important.
What does success look like?
Just under 400,000 additional homes have been delivered since the start of the current parliament, underlining the pace required to meet the target. But outside of this, success is defined not by numbers alone, but by the creation of thriving places.
The Pagabo report suggests this broader perspective is at risk of being lost. An over-reliance on fragmented, piecemeal interventions has created a complex delivery landscape. Without a more integrated approach, accelerating housing delivery and creating thriving communities will remain competing priorities.
The answer lies in greater collaboration between local authorities and developers.
Developer-led procurement through joint ventures can accelerate delivery, improve value for money and better community outcomes, while avoiding the cost and delays of traditional open-market developer procurement. Bringing partners together from the outset will accelerate delivery while ensuring communities help shape the places they live.
Jonathan Parker is development director at national procurement specialist Pagabo.
