“We’ve been looking forward to this fight since the morning after the election,” a senior government source remarked with near glee, referring to the government’s efforts to overhaul the planning system. Determined to push forward with ambitious housing targets, ministers aim to prove Labour’s commitment to homeownership and secure safe, permanent housing for more voters within this parliamentary term.
A flood of statistics illustrates the housing crisis. Buying a home has become an uphill struggle, even for those who can theoretically afford it. Finding decent accommodation is even harder for those on lower incomes. This week, Halifax, one of the UK’s largest mortgage lenders, reported record-high house prices. Two decades ago, a family might have expected to buy a home worth four times their annual income—today, that figure has doubled. Consequently, the proportion of renters has nearly doubled in twenty years.
The number of families without a stable home has also surged. Over 159,000 children in England alone are currently homeless and living without a permanent address—a record high. Meanwhile, the housing benefit bill, which supports those struggling to pay rent, has soared to around £20 billion annually, placing a growing burden on taxpayers. Housing policy affects everyone, whether as homeowners, renters, or taxpayers.
Sir Keir Starmer has emphasized homebuilding since his time in opposition, declaring “we are the builders” at the 2023 Labour Party Conference. Industry experts welcome Labour’s focus and ambition, contrasting it with the previous government’s approach. Deputy Prime Minister Angela Rayner has been praised for engaging meaningfully with the housing sector. One industry leader noted, “It’s brilliant to have a government that wants to fix the market—it’s pretty broken.” Even a senior Conservative acknowledged that restoring mandatory local housing targets was the right move, admitting, “We were wrong to get rid of them.”
Despite Labour’s commitment, some question whether their plans go far enough. The government has set a “stretching” goal of building 1.5 million homes by 2029. To achieve this, ministers are introducing a planning bill, reinstating council targets, expediting large housing developments, and launching a task force to create new towns. The government’s broader message—echoed by Rayner on housing, the prime minister on nuclear energy, and Chancellor Rachel Reeves on Heathrow—is clear: “The answer can’t always be no.”
Intentions, however, are one thing; delivery is another. While ministers stress their efforts to streamline planning, actual approvals have plummeted. In the lead-up to the election, as Labour’s victory seemed inevitable, planning approvals dropped to their lowest level in a decade. Since Labour took office, approvals have continued to decline.
Additionally, Labour’s policies send mixed signals. They have raised stamp duty for first-time buyers and tightened regulations for private landlords to improve rental standards—measures that, while well-intentioned, increase costs for builders and buyers. As one housing industry source put it, “In some areas, they’re encouraging building, but in others, they’re making it really expensive to build.”
Moreover, fixing planning rules alone won’t be enough. Local councils face acute shortages of planning officers, limiting their ability to process applications efficiently. Housing associations, vital for social housing, are financially stretched. While they have been tasked with improving housing standards, these upgrades are costly. Without sufficient funding, housing associations struggle to commit to new projects, delaying tens of thousands of affordable homes.
Beyond policy, the construction industry itself faces challenges. Are there enough builders, plumbers, and electricians to meet the demand? A government insider admitted, “There was a belief that if we pulled the planning lever, everything would follow. But planning is just one piece of the puzzle.” Another expert added, “Labour seems to think planning is the answer to everything. It’s not.”
Starmer’s rhetoric echoes that of Boris Johnson’s optimism: dismissing naysayers and insisting that housing is a priority. But two fundamental truths remain.
First, the housing market is inextricably linked to the broader economy. Many people are financially stretched, making it harder for first-time buyers to secure loans. Property developers are also hesitant. As one source put it, “A baker won’t bake a loaf of bread unless he knows someone will buy it. With so much economic uncertainty, why would builders invest in land and construction without guaranteed returns years down the line?”
Second, Labour’s housing strategy lacks the transformative ambition needed to overhaul the market. The government has not proposed direct council funding for housing projects, nor has it introduced a large-scale mortgage scheme akin to George Osborne’s Help to Buy. There’s no equivalent of Margaret Thatcher’s Right to Buy policy from the 1980s or Clement Attlee’s massive post-war council house-building program. Instead, Labour is relying largely on market-driven solutions—approaches that have been tried before.
The opportunity for change is enormous. Making it easier to buy a home and expanding access to decent rental housing would significantly improve lives. Ministers are undoubtedly determined to make a difference, but ambition alone does not equate to action. As one government source optimistically put it, “Imagine if, in the end, we know there will be children growing up in houses that exist because we made this change.”
It’s an admirable goal, but as critics argue, achieving it requires more than just political will—it demands genuinely radical action. Ministers can promise to build, but they are quickly learning that simply declaring, “Let it be so,” is not enough.
