𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

New data has proven that Labour’s house building targets are “pure fantasy”, critics suggest. The Government has promised to build 1.5million new homes this parliament, but the construction of new houses fell by 8.2% from April to June this year compared to the same period in 2025, according to Office for National Statistics (ONS) figures. In June, UK construction output fell by 0.1%, following a 0.8% in May and a 0.1% fall in April, data also suggests.

The housing secretary, Angela Rayner, said earlier this week that applications to build accommodation around railway stations would be a “default yes”. She added: “I don’t like failure. I’m very clear that we need these homes. We have already seen nearly 400,000 since we came into office, new homes that have completed. We’ve seen a 15% increase in start-ups for housing starts.

“We want to continue on that path and that’s why we’ve set out these rules to make sure that we can get planning through as quickly as possible, and we can get the infrastructure alongside the housing that we desperately need.”

Reform UK’s deputy leader and housing spokesperson, Richard Tice, told The Express: “These figures just prove Labour’s targets are pure fantasy. Britain desperately needs homes yet not more of Angela Rayner’s spin.

“Reform will cut the red tape, scrap the obstacles and get Britain building again with extra focus on regeneration of our town centres.”

Nigel Farage’s party has said it would fast-track the building of housing on brownfield sites and a “loose-fit planning policy” would be applied to large residential projects with “preapproved guidelines and developer requirements”.

Efforts would also be aided by modular construction and digital technology, Reform says.

A House of Lords report noted last week that in 2025/26, an estimated 199,500 net additional homes were delivered in England.

“This is considerably below the average of 300,000 per year that would be needed to meet the government’s target of 1.5mn across this parliament,” it added.

But it did note that the new build dwelling starts in England were estimated to be 33,960 in the first quarter of 2026, an 18% increase when compared to the first quarter of 2025.

Ms Rayner also announced a softening of planning rules for traveller sites, meaning local authorities will have at their disposal fewer ways to block them.

Paul Holmes, Conservative Shadow Parliamentary Under Secretary for Housing, Communities and Local Government, said : “Labour are failing abysmally to deliver their 1.5 million homes pledge. In Labour-run London, Sadiq Khan has presided over the lowest level of housebuilding since the Second World War.

“Labour’s taxes and red tape have made building less viable. And in a desperate attempt to cover for their failure, Ministers are trying to force councils to accept development on the green belt – including traveller camps.

“The Conservatives are the only party that will deliver the new homes we need while respecting local democracy, and scrap stamp duty to unfreeze the housing market and release more homes to rent and buy.”

Critics suggest that former Chancellor Rachel Reeves’ changes to Business Property Relief at the 2024 Budget have made construction plant-hire firms, many of which are family-run, liable for huge inheritance tax bills.

The changes, which came into force on April 6, mean any inheritance above a £2.5million threshold will face an effective tax rate of 20%.

The threshold was increased from an initial £1million for firms claiming agricultural and business property relief after public outcry.

But construction firms, like farmers, claim they are disproportionately affected by the changes because the value of their business normally sits in equipment and machinery rather than in cash reserves, meaning they cannot pay their tax bill without selling machinery or borrowing against their company.

A survey of the Construction Plant-hire Association’s (CPA) nearly 2,000 member plant-hire firms, which provide vital machinery to British builders, eight in 10 said recent tax changes had reduced their investment confidence.

Three in four said they did not believe the Government’s housebuilding target was achievable.

A quarter said it was but only with “significant policy changes”.

The Prime Minister, Andy Burnham, has vowed to oversee a massive program of house building.

He said in June that Number 10 North, a new branch of the Government machine Manchester, will be responsible for delivering the “regeneration of places” including the “biggest council house building programme since the post-war period” using “vacant public land to reduce costs.”

Steve Mulholland, CEO of the CPA, said: “Andy Burnham says he wants to deliver growth in every postcode and get Britain building – and we laud that aspiration.

“But these new figures lay bare the enormous challenges facing the UK construction sector at the moment.

“Firms are battling sky-high energy costs, employment costs, and spiralling tax bills.

“The result is fewer homes being built and dwindling construction output overall.”

The expert called on Andy Burnham to take decisive action to unshackle builders from policies he claims are undermining their ability to construct more homes.

Mr Mulholland said: “Saying you want to deliver 1.5 million new homes is easy.

“Now we need action from the Prime Minister to make that a reality.

“That’s why we’re calling for Business Property Relief to be re-instated to pre-Starmer levels. “This measure will enable construction companies, which are often small and family-run, to invest, build, and meet the Prime Minister’s housebuilding aspirations.”

Minister for housing and planning Matthew Pennycook told MPs in July last year that the Government expected house completions to be low in the first few years of the parliament, but they would increase significantly in the second half.

A Government spokesperson said: “We’re building the homes this country needs by investing £39 billion in social and affordable housing and tackling planning blockages – with new measures set out just this week to speed up the system.

“Thanks to our reforms housing starts are up 15% on last year, and housebuilding will ramp up in the later years of this Parliament as more measures begin to bear fruit.”