‘Sludge in the system’: myriad problems stymie Labour’s 1.5m new homes pledge
Labour’s pledge to build 1.5 million homes during the current parliament is off track, with only around 300,000 homes added in the first 18 months—falling nearly a third short of the required pace. Soaring construction material costs, a lack of apprenticeships despite strong training demand, and weak market viability due to affordability issues and low buyer demand are major barriers. Planning reforms and reduced affordable housing targets have not spurred the expected increase in building. Industry leaders warn of a systemic crisis affecting both private and social housing development.
- ▪Just over 300,000 homes were added in the first 18 months of the new parliament, significantly short of the 450,000 needed to stay on track for Labour’s 1.5 million target.
- ▪Construction material costs have surged, with UK brick prices up 80% over the past decade and insulation, metal, and concrete prices rising about 50% since 2021.
- ▪Despite over 62,500 adults enrolling in construction courses in England last year, only 24,500 started apprenticeships, highlighting a gap between training and job placement.
- ▪Berkeley Group, a major London developer, has halted land purchases and hiring due to rising costs, weak demand, and regulatory pressures, reflecting broader industry challenges.
- ▪Affordable housing provision has stagnated, with developers citing viability issues, while local authorities and housing associations also face stalled projects due to market conditions.
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Just over 300,000 homes were added to the housing stock in the first 18 months of the new parliament – nearly a third short of the pace needed to meet Labour’s manifesto target. Composite: Prina Shah for the Guardian / Maureen McLean / Shutterstock / Getty ImagesView image in fullscreenJust over 300,000 homes were added to the housing stock in the first 18 months of the new parliament – nearly a third short of the pace needed to meet Labour’s manifesto target. Composite: Prina Shah for the Guardian / Maureen McLean / Shutterstock / Getty ImagesConstruction industry‘Sludge in the system’: myriad problems stymie Labour’s 1.5m new homes pledge Soaring cost of building materials, lack of affordability and planning bottlenecks are some of the obstacles thwarting housing targetJessica Murray Social affairs correspondent and Krystina ShvedaSun 26 Apr 2026 01.01 EDTLast modified on Sun 26 Apr 2026 01.02 EDTSharePrefer the Guardian on GoogleAt South and City College in Birmingham, dozens of young people clad in hi-vis vests and hard hats are building mini-walls and plastering half-formed rooms.Some weave in and out of stacks of bricks with wheelbarrows, while others use spirit levels to check the walls are straight and flat. In a few days time, these walls will be demolished and the plastering scraped away, for a new class to come in and try their hands.This is the new generation of Britain’s construction workers, eager to rise to the task of building the 1.5m new homes the government has repeatedly proclaimed will solve the country’s housing crisis.But despite ploughing ahead with extensive planning reform, cutting affordable housing targets and accessibility requirements in the name of a “Build Baby Build” philosophy, many in the sector think reaching the 1.5m target is impossible.Just over 300,000 homes were added to the housing stock in the first 18 months of the new parliament, according to government estimates – nearly a third short of the pace needed to meet the manifesto target.So what is happening with housebuilding in the UK, and will the government reach its goal by the end of this parliament?Labour shortagesFor years, experts have been ringing alarm bells about a growing skills crisis in the construction industry – there were 140,000 job vacancies stalling essential housing and infrastructure projects in 2025, according to Places for People, and it is forecast a third of construction workers will retire by 2035.Staff at South and City College say the problem isn’t a skills crisis but an opportunities crisis. Their courses – from brickwork and plumbing, to electrical and carpentry – are busier than ever. They’re expanding their Longbridge campus to accommodate the rising demand, increasing class sizes and putting on extra cohorts.View image in fullscreenStudents practising building walls at South and City College in Birmingham. The college offers courses in the construction industry. Photograph: Andrew Fox/The GuardianMore than 62,500 adults enrolled to study for a qualification in construction in England last academic year, according to the Department for Education data. It was the fastest-growing field of study in adult education, with enrolments up by nearly a third since 2021.chart Informal training that does not result in regulated qualification also more than doubled from just over 10,200 students to 23,500 last year.Awad, 19, said he had to be on a waiting list before he was able to get on the college’s plumbing course –…
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