Developers Urged to Act as UK Housing Delivery Falls Short of Government Targets
The UK’s housing crisis has deepened as the latest statistics from the Ministry of Housing, Communities and Local Government (MHCLG) reveal that new housing supply in England continues to lag far behind demand. Despite government ambitions to deliver 300,000 new homes per year, current delivery rates remain well below target, putting pressure on renters, buyers, and developers alike.
Housing Secretary Steve Reed MP has doubled down on the government’s pledge to “build, baby, build,” promising bold planning reform and increased investment in affordable homes to reverse the trend.
Housing Delivery Falls Behind
Official data for April to June 2025 paints a mixed picture. Housing completions dropped by 19% compared to the same quarter in 2024, highlighting the ongoing gap in housing delivery. However, there was some optimism as new build starts rose by 16% year-on-year, suggesting momentum could be building for the future.
Since the beginning of this parliament, MHCLG estimates that around 230,000 net additional homes have been delivered—still far short of the cumulative totals needed to hit national housing targets.
Regional Disparities in Housing Supply
The figures show stark contrasts across the country. London experienced the steepest annual decline, with new housing starts falling by an alarming 54% compared to last year. Meanwhile, the East Midlands bucked the trend, recording a 60% increase in new build starts.
These wide variations highlight the urgent need for consistent national investment and planning reform to ensure that housing supply is delivered equitably across regions, supporting both urban regeneration and rural communities.
Impact on the Property Market
For property agents and the wider property market, the shortage of new homes has direct consequences. Demand is outstripping supply in the private rented sector, with Propertymark’s July 2025 Housing Insight Report showing six applicants competing for every rental property. This level of competition—combined with the third fewer rental homes now available compared to pre-pandemic levels—is putting unprecedented pressure on tenants.
Barriers to Building: Planning Delays and Funding Shortages
Between April and June 2025, local planning authorities received 5% fewer applications compared with the same quarter in 2024. Of those, 8% fewer residential applications were approved. Chronic planning delays are compounding shortages, as local authorities struggle with limited resources and staff capacity.
Industry leaders, including Propertymark, have repeatedly warned that housing delivery will continue to stall unless barriers such as land availability, funding access, and planning team capacity are addressed alongside broader legislative reform.
Urgent Action Required
Propertymark has welcomed government investment in affordable housing, including the £3.9 billion pledged in the June 2025 Spending Review and commitments made in the 2024 Autumn Budget. However, without long-term reform and sustained funding, these headline pledges risk falling short.
“Action is urgently needed to increase the supply of all housing types and improve affordability for both tenants and buyers,” a Propertymark spokesperson said. “Without decisive reform, government housing targets will remain out of reach, and the housing crisis will only deepen.”
