Britain’s push to dramatically increase the supply of new homes — a cornerstone election promise of Prime Minister Keir Starmer’s government — is proving more challenging than ministers
hoped, raising doubts about how quickly the country can deliver the growth boost many economists say is tied to construction.
On Thursday, the government secured final approval for sweeping legislation aimed at simplifying the planning system and accelerating infrastructure projects. Supporters say the bill could help unlock stalled developments, reduce bureaucratic hurdles and encourage investment from major housebuilders. Ministers describe the reforms as a “turning point” in an industry long constrained by red tape and local resistance.
However, even with the reforms in place, Britain remains some distance from meeting its ambitious housing targets. The government has pledged to increase annual building rates to ease the housing shortage, stabilise soaring rents and help first-time buyers enter the market. Yet current progress suggests those goals will take time to materialise.
A major obstacle lies within the planning system itself. Although the new legislation aims to accelerate approvals, developers continue to face lengthy delays at local authority level. Planning departments across the country are under-resourced and struggling with backlogs, leaving projects stuck in limbo. Industry bodies warn that without extra staffing and funding for councils, legal reforms alone may not be enough to speed up decision-making.
Economic headwinds are also weighing on the sector. Developers say elevated borrowing costs, inflationary pressures and uncertain consumer confidence are reducing demand for new homes, leading some firms to pause or scale back projects. Meanwhile, regional house prices have cooled in recent months, damping enthusiasm for major investments and making expected returns harder to guarantee.
Land viability remains another sticking point. In many regions, the cost of land combined with requirements for affordable housing, infrastructure contributions and environmental standards can make projects financially unworkable. Developers argue that some sites earmarked for growth cannot move forward without additional government support or more flexible rules.
Perhaps most noticeably, the construction industry is confronting a chronic shortage of skilled workers. Years of underinvestment in training, an ageing workforce and reduced migration have contributed to labour gaps that are pushing up wages and slowing delivery timelines. Without more tradespeople — from bricklayers to surveyors — the government’s targets risk becoming increasingly difficult to achieve.
Housing campaigners and economists alike warn that unresolved shortages will not only keep home ownership out of reach for many younger Britons, but also limit the government’s ability to use construction as a driver of economic expansion. More homes typically mean more jobs, stronger supply chains and greater consumer spending. Falling short could weaken the administration’s wider growth strategy.
Despite the challenges, officials insist progress will come. Ministers point to the new legislation, future public investment and planned incentives for local authorities as evidence that momentum is building. They argue that after years of slow policy movement, Britain now has a clearer national vision for housing delivery.
Still, the next few years will determine whether the government can translate that vision into the number of new homes it promised voters — or whether structural problems in planning, labour and finance will continue to impede one of the administration’s most high-profile goals.
For now, Britain remains at a crossroads: a country in urgent need of housing, led by a government determined to build, but facing a landscape in which ambition must contend with political, economic and practical realities.