Labour’s 1.5 Million Home Pledge in Jeopardy as London Housebuilding Slows
The ambitious Labour housing target of 1.5 million new homes by the next election is facing a major setback, as housebuilding in the capital plummets to record-low levels. Only 30,000 new homes were completed in London in the year to June 2025, marking a 12% drop from the previous year and far below the annual target needed to meet the national goal.
Planning approvals in London have fallen to their lowest point since records began in 2006, with just 966 projects greenlit in the past 12 months. Housing developers warn that this slowdown could make it nearly impossible for Labour to achieve its 1.5 million home pledge, with London expected to contribute 440,000 of the new homes by 2030.
A report from the Home Builders Federation (HBF) highlights that delays from the Building Safety Regulator are disproportionately affecting high-rise developments, leaving as many as 10,000 homes in limbo for more than six months. Rising costs from building regulations, taxes, and brownfield site remediation are also putting pressure on builders, with some projects becoming financially unviable.
Neil Jefferson, Chief Executive of HBF, said:
“London urgently needs a comprehensive housing policy overhaul. Current regulations, combined with new taxes and complex approval processes, have made the capital a challenging environment for housing investment.”
Rick de Blaby, Chief Executive of Get Living, added:
“Building homes in London has never been more difficult. The cumulative regulatory burden is pushing up costs and slowing delivery at a time when the city desperately needs more housing.”
A Ministry of Housing, Communities and Local Government spokesperson acknowledged the disappointing figures but emphasized that the government is committed to achieving the 1.5 million homes target. Efforts include close collaboration with the Mayor of London and the Greater London Authority to accelerate approvals and construction.
A spokesperson for the Mayor of London highlighted that while housebuilding has slowed nationally, the city has historically delivered strong results, including tens of thousands of affordable homes and new council housing starts at levels not seen since the 1970s.
