The latest housing supply statistics from the Ministry of Housing, Communities, and Local Government (MHCLG) paint a mixed picture of progress in addressing England’s housing needs.
The new figures reveal a 6% year-on-year decline in net additional dwellings, dropping from 234,291 in 2022-23 to 221,070 in 2023-24. Supply now lags 11% behind the 2019-20 peak of 248,600 new homes.
As economic pressures continue picking up the pace of housebuilding continues to be hampered, Chris Smith, Head of New Build at Polypipe Building Products said.
“The figures show that meeting the new Government’s housing targets is going to be a tough task. However, it’s not an impossible one. To turn the tide and reverse the decline in house building all stakeholders must work together.
“New regulations are increasing the time it takes to design and acquire sign off on new developments which is contributing to a blockage in supply. While enhanced rules are positive for improving the quality of our buildings, making sure new designs are compliant takes longer. Labour’s planning reforms also has the potential to unblock planning bottlenecks and speed up supply. Over time we expect the pace of housebuilding to increase and to see innovations in the industry as organisations meet, and exceed, the new regulations.”
The construction and delivery of the 221,070 new homes in 2023-24 contributed significantly to the economy, generating an estimated £49 billion in economic output. It also provided nearly 10,000 opportunities for apprentices, graduates, and trainees to enter the industry. However, Chris Smith, says more can be done to encourage a new generation of housebuilders.
“The lack of skills will be the biggest barrier to meeting government targets and urgent action is needed to help the industry to pick up the pace. More apprentices and greater support for new entrants to the industry are needed in order to retain new talent. Incentivising businesses to support apprentices and improving the wages they earn means more people are likely to continue a career in housebuilding, rather than being lost to other professions.”
New builds continue to dominate housing delivery, accounting for 90% of net additions. The South East led with 34,370 new build completions, but this still marked a 10% decline compared to the previous year. Meanwhile, Yorkshire and the Humber stood out with a 10% increase, reflecting regional variations in housing delivery.
Changes of use contributed 21,590 new homes, down 3% from 2022-23. Of these, 8,825 were delivered via permitted development rights, with former offices accounting for the majority.
Chris Smith, continued: “Special attention can also be paid to improving retrofit efforts. At present upgrading current housing stock is not as commercially viable as creating new build homes which is leading to an imbalance in the stock available. Greater support must be offered if the Government is to reach its own lofty goals.”
Affordable housing remains a crucial component of the overall housing supply. In 2023-24, 56,971 affordable homes were delivered, comprising 29% of all new builds. While affordable housing delivery fell 2% year-on-year, these homes were overwhelmingly funded through Section 106 agreements, which accounted for 44% of the total.
Chris Smith, continued: “With first-time buyer support schemes limited and rising demand for affordable homes, ensuring this segment of the market keeps pace with overall delivery remains a pressing challenge.”