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04 Jun 2025

UK housebuilding: challenges and opportunities

The government hopes that a greater supply of properties will make homes more accessible. It aims to create 1.5 million new homes by 2030. How do housebuilders help make this happen? We examine the key drivers and obstacles in our latest report.
 

The UK government’s housebuilding target means 300,000 new homes a year. That’s 50% up on what the previous administration achieved. To reach this goal, the government has identified several ‘golden rules’ for planning reform: fast-tracking development on brownfield sites; releasing lower-quality green-belt land for new homes; streamlining the planning process; and increasing targets for affordable housing on ‘grey belt’ developments.

 

Report highlights

How will these reforms account for housing shortfalls? What happens to housing prices and construction costs? And what partnership structures can housebuilders adopt to lower development risk and reduce capital requirements?

- 3%

Planning approvals fell from 248,000 to 241,000 for England between 2023 and 2024.

+ 3%

Land prices have normalised since a spike in the pandemic years.

0%

Rises in building materials were near zero in 2024. Only modest inflation is expected for 2025.

+ 3.4%

The average UK house price is up between April 2024 and April 2025.

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UK housebuilding: challenges and opportunities report

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Aynsley Lammin
Aynsley Lammin

Aynsley Lammin

Equity Analyst, Building and Construction

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