Government needs to build 450,000 new homes a year by 2029 to meet target, says Housing Forum

The Housing Forum has projected that the new government will need to increase house building to 450,000 homes a year by 2029 to meet its target of delivering 1.5 million homes over this parliament.

A report from the cross-sector membership organisation said that this target represents the highest rate of housebuilding in 50 years.

However, recent government data shows that only around 160,000 homes are expected to be built this year, about half of the current target.

The ‘Roadmap to 1.5 million new homes’ report noted that the affordable housing sector is “in a particularly bad situation”, with many large housing associations and councils having ceased buying land and cut back on development plans to focus on existing stock.

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The report recommends establishing a £4bn housing accelerator fund to deliver 60,000 additional affordable rental homes.

The Forum has called on the government to help local authorities commission more housing projects by increasing their borrowing capacity, as well as borrowing costs.

The report states that the government should end Right to Buy (RTB) to preserve the current stock of affordable housing for future generations. It said ending RTB for newly-built homes is “particularly important”, as this will give councils a stronger incentive to build.

The report also urges the government to better resource the planning system by improving recruitment, retention, and raising the profile of planners.

The report also states that decisions on minor planning applications and reserved matters consents should be delegated to professional planning officers.

The Housing Forum recommends requiring a higher proportion of affordable housing through section 106 agreements on greenfield sites compared to brownfield sites.

It said this approach will ensure brownfield development is viable while maximising affordable housing on greenfield sites, which are typically easier to develop.

The Housing Forum said that it is keen to engage with the government to find ways to unblock new homes currently stalled by nutrient neutrality rules.

It says the Environment Agency should be empowered and expected to address pollution from farming and poor wastewater management.

In the meantime, housebuilding should proceed while mitigation measures are developed in collaboration with agencies, farmers, and sewage companies.

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Chief executive at the Housing Forum, Shelagh Grant, said: “We all know that a step change in housebuilding rates is needed. The Government’s targets are ambitious, especially given the challenging situation in which the housing sector currently finds itself.

Grant added “However, the organisations we work with across the housing sector – from architects and manufacturers, to housebuilders, housing associations and local councils – are ambitious too.”

“We’ve set out here the policy reforms that we believe would help the sector to deliver the new homes that are so badly needed.”