Housing Secretary Angela Rayner has told the BBC there is a “slim chance” the government will meet its manifesto pledge to build 1.5m new homes over the current parliamentary term, citing high construction costs and the economic fallout from the Iran war as key obstacles.
The target was a centrepiece of Labour’s election platform, promising to address the chronic shortage of housing across England and to deliver homes at a pace not seen in decades. With fewer than two years remaining in the term, the admission marks a significant retreat from the government’s original ambition.
Cost pressures and global instability
Rayner pointed to the combination of elevated material prices, labour shortages in the construction sector, and the disruptive economic effects of the ongoing conflict in Iran. The war has driven up energy costs and disrupted supply chains, feeding through to the building trade in the form of higher quotes for materials and longer delivery times.
Local authorities and private developers alike have reported that projects previously scheduled for completion are being delayed or scaled back. The government’s own pipeline of approved sites has been affected, with some land purchases delayed pending clearer economic signals.
What the government is doing
Despite the revised outlook, ministers insist they are not abandoning the pledge outright. The government has been working with local councils to identify brownfield sites that can be brought forward more quickly, and has explored incentives for small and medium-sized builders to take on projects that larger firms have deprioritised.
Plans for a revised housing strategy are expected to be outlined in the next budget cycle, with an emphasis on affordable homes and social housing rather than the broader 1.5m figure. However, no formal repudiation of the original target has been issued.
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Why it matters
Housing supply is one of the most politically sensitive issues in British public life. A failure to deliver on a flagship manifesto commitment risks eroding confidence in the government’s ability to follow through on its promises. For millions of people on housing waiting lists, the difference between 1.5m homes and a lower number translates directly into years of uncertainty.
What happens next
The government is expected to publish a reset housing strategy that recalibrates expectations while attempting to maintain momentum on the projects that can still be delivered. Opposition parties are likely to seize on the admission as evidence of broken promises, and the issue will feature prominently in the next election campaign wherever housing is a local concern.
Source: BBC News.
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