Government targets more unattainable as UK housebuilding falls sharply

30 January 2025

According to the latest ONS data on starts and completions of new build dwellings in the UK, in the year to September 2024, the number of project starts has fallen by 35% to 124,370, down from 192,660 for the same period in the previous year. 

The number of completed dwellings in the year to September 2024 was 187,950, down 6% on September 2023 (200,870). Of the total completions, 45,490 were affordable housing, with 142,110 for private enterprise. For September 2023, there were 44,330 affordable and social housing completions, with 156,550 private housing completions. 

Kelly Boorman, National Head of Construction at RSM UK, said: “The housebuilding data shows that while volume of completed projects remained relatively steady, the number of project starts in the year to September 2024 has fallen sharply on the previous year. This indicates a slowdown in housebuilding activity amidst volatility in the housing market and uncertainty in the run up to the budget. Businesses have been more cautious as a result and have reduced their volumes to avoid stockpiling. There’s also been the added complexity of changing mortgage rates which has been a challenge for developers and buyers, which alongside the removal of Help to Buy, is making new homes more unaffordable to purchase and reducing demand. There’s also an influx of existing homes coming onto the market, which may discourage sales of newbuild homes. 

“We therefore expect major headwinds for increasing sales volumes in the next 12 months, which could spell further trouble regarding the attainability of government’s 1.5million homes target over the next five years. In addition, although social and affordable housing volumes remain on track, there has been concern around the growing need to reform the Right to Buy policy, especially in London. The housebuilding data shows that in London, project starts have fallen by 33% in the year to September 2024, yet in line with government’s targets, this needs to increase by 247%, so this is an acute problem for local authorities and housebuilders.” 

She added: “Industry is waiting on local authorities to announce their devolved plans, following the publication of the National Planning Policy Framework, which will help to remove red tape. However, the gap is widening between mandatory targets and current volumes, so businesses urgently need practical support from government to build efficiently and accelerate delivery.”  

Kelly  Boorman
Partner, Head of Construction
Kelly  Boorman
Partner, Head of Construction