The Labour Party manifesto released prior to the July 2024 general election pledged to build 300,000 new homes a year over the 5 year parliamentary term expiring in 2029.
PETER HALLIGAN
We are now 18 months in, so the 1.5 million new homes promised could feasibly be reduced to 1 million (4 times 300,000 houses with some wiggle room) . With each home housing around 3 people , this represents an acknowledged shortfall of housing for 3 million people. A crisis.
There is no shortage of funds for building unsightly forests of ‘net zero’ windmills and plantations of solar panels that ol increase household utility bills, or to relaunch HS2 (£100 billion by 2039) and build extra runways at Heathrow (£49 billion) and Gatwick) or spending on the NHS (from Brave AI: “Since July 2024, NHS spending in England has seen a significant increase, with Chancellor Rachel Reeves announcing a £22.6 billion real-terms increase in the day-to-day health budget over the 2024/25 and 2025/26 financial years. This represents the largest real-terms growth in day-to-day NHS spending outside of the pandemic since 2010.“
What about housing?
Since July 2024 according to Brave AI:
“Since 9 July 2024, an estimated 309,600 homes have been completed in England, according to official data from the Office for National Statistics (ONS).
This figure represents just over a fifth (approximately 20.6%) of the Labour government’s target of 1.5 million new homes over the current parliamentary term.”
“Note: The government’s 1.5 million home pledge applies only to England. Housing delivery in Scotland, Wales, and Northern Ireland is managed by devolved administrations and is not included in this total.”
Ah, I hear you say “what about planned houses”?
“Planning permissions for housing in England have seen a significant decline since July 2024, with data indicating a record low in full-year approvals for 2024.
“In 2024, the number of housing projects granted planning permission in England fell to a record low of just over 30,000—the lowest since records began in 1979.
In the first quarter of 2025, approvals dropped further: 2,306 housing projects were approved, a 17% decrease from the previous quarter and 22% lower than the same period in 2024.
The number of residential units approved in Q1 2025 was 50,610, a 37% fall compared to Q4 2024 and the lowest quarterly total since 2012.
So much for intentions!
What about prices for new houses?
Again using Brave AI:
“As of late 2025, the average asking price for a newly listed newbuild home in the UK has surged to £442,281, up £15,138 since July 2025.“
“Between 2024 and early 2026, newbuild prices rose significantly, outpacing existing homes. In 2023, newbuild prices surged by 17.2%, while existing homes fell by 2.4%. By 2025, growth in newbuilds remained strong—6.7% for flats—despite a subdued overall market, with Halifax reporting just 0.7% annual growth in UK house prices from November 2024 to November 2025.
“These trends highlight a growing divide: newbuilds are increasingly expensive and in high demand, driven by limited supply, rising construction costs, and regional economic dynamics.
There is no indication of whether new build homes are “green houses with compulsory solar panels and heat pumps “ which add to the costs. There is also no easy access to the costs of drains, roads, street lights , sewers, drains, internet and electrical cabling, roundabouts etc that are needed to support new streets.
Here’s some recent UK building and construction company collpases (from Brave AI:
“FK Group entered administration in January 2026, reporting a £5.9 million pre-tax loss for the year ending March 31, 2024. The Cheshire-based firm, which includes subsidiaries FK Construction and FK Group, saw its turnover drop by 23% to £100.6 million. The collapse was attributed to industry headwinds, including delays in the building safety regime and an ongoing legal dispute with the collapsed tier one contractor ISG.
ISG, one of the UK’s largest construction firms, fell into administration in September 2024, resulting in over 2,000 job losses and halting 69 live government projects, including prison expansions and school builds. The company had £4.3 billion in contracts in the pipeline, with £2.5 billion in work-in-progress.
Other notable collapses since 2024 include:
- Stewart Milne Group (January 2024): A Scottish housebuilder that ceased trading, leaving over 30 active sites unfinished and impacting homebuyers.
- Buckingham Group Contracting (September 2023): Known for stadium projects, it collapsed due to loss-making contracts and inflationary pressures.
- Midas (February 2022): A South West firm affected by the pandemic, rising costs, and supply chain disruptions.
In early 2025, additional firms entered administration:
- Acheson Construction (February 2025): A South and South West England contractor with 88 employees, cited as a victim of fixed-price contracts and debt.
- Easy-Trim (Lancashire roofing supplier): Filed for administration with a pre-tax profit of just £233,000 in 2023.
- Carbon8 (modular carbon solutions): Failed to secure investment, leading to administration under Quantuma.
- Thurston Group (modular buildings): Filed notice in November 2025 after a modest £3.3 million pre-tax profit in 2024.
The construction sector has seen a sustained wave of failures, driven by high interest rates, inflation, cost overruns, and legacy financial issues, with over 11,000 firms lost since 2021 and around 100,000 workers affected.
Builders face the same massive increases in tax, minimum wage and employers national insurance costs imposed by this Labour government – there is no indication of any nationalisation – as with the rail companies, or oil refineries (Grangemouth in Aberdeen)/steelworks(Scunthorpe).
Not getting close to election promises made, spending tens of billions on other projects and standing by while thousands of building companies fail or face financial difficulties. All his on top of the deliberate castration of every high street in the country from those same tax/NI increases, minimum wage hikes etc, this Labour government lacks any coordination and skill in shaping billions upon billions of spending of taxpayers money.
Onwards!
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This article (The Labour Party manifesto released prior to the July 2024 general election pledged to build 300,000 new homes a year over the 5 year parliamentary term expiring in 2029.) was created and published by Peter Halligan and is republished here under “Fair Use”
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