Wed, 29 Oct 2025

Wed, 29 Oct 2025 Government set to miss 1.5m target, housebuilders warn

Housebuilders tell the government's budget watchdog the new homes target for England is too optimistic.
The Home Builders Federation (HBF) has written to the Office for Budget Responsibility (OBR), warning that the government's target of building 1.5 million homes in England by the end of the decade may be unachievable without changes to boost affordability and cut taxes. The HBF argues that unless the government takes action, the target will not be met, as first-time buyers are being priced out of the market. The industry body says that planning reforms alone are not enough to kick-start building in a flat market, and that further measures are needed to support first-time buyers and reduce costs associated with building new homes. The HBF claims that increases to landfill tax will add £14,000 to the cost of each new home, while a new building safety levy next year will also increase costs. The warning comes ahead of Chancellor Rachel Reeves' Budget on November 26th, which is expected to focus on boosting productivity and addressing the UK's economic growth. The OBR is set to downgrade its productivity forecast, which could impact the government's growth predictions. Reeves has promised to "defy" gloomy forecasts for the economy, but the HBF's warning adds pressure on her to deliver a Budget that addresses the industry's concerns and supports the building of new homes.
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