- Planning reform’ was mentioned a record 520 times in Parliament in 2025, according to Hansard
- However, new analysis shows the Government has not met talk with action
- In the last financial year, every English region started fewer homes than in the previous financial year
- In London – where the housing crisis is most acute – only 4,170 new homes were started, down 72% on 2023/24
- London has built more than 10,000 homes every year since 1946, but the low housing start numbers mean only 4,550 homes are likely to be finished in both 2027 and 2028 according to the consultancy Molior. The capital faces its largest challenges to housebuilding since the Second World War
- Across England, just 115,700 homes were started in Labour’s first year in office – a mere 39% of the 300,000 a year needed to hit the Government’s housing targets
Despite the Government pledging to make housebuilding a priority, there is little sign Labour can deliver on their housing ambitions, according to new analysis from the Centre for Policy Studies.
2025 was a record breaking year for discussion, with figures showing ‘planning reform’ was mentioned a record-breaking 520 times in Parliament. However, on numerous metrics, the reality is not measuring up to the talk.
In 2024/25, every region in England started fewer homes than in the previous financial year – as shown on a new data hub built by the Centre for Policy Studies. This slowdown was especially dramatic in London, which saw only 4,170 new homes starting construction last financial year, a 72% fall over the previous year.
Every year since 1946, London has completed more than 10,000 homes. But given the dreadfully low numbers for housing starts, the consultancy Molior predicts that only 4,550 homes a year will complete construction in both 2027 and 2028. London hasn’t built so few homes in over 80 years. The Centre for Policy Studies warns that London housebuilding faces its largest challenge since the Second World War.
Housing starts are down across all tenure types in the capital. London local authorities started construction on a mere 90 homes last financial year, a fall of 95% from the previous year. Housing association starts in London are similarly down by 78%.
Across England, there’s little sign that Labour will hit their 1.5 million home target for this Parliament. That breaks down to 300,000 homes per year, yet in their first year in office just 140,860 homes were completed (47% of the target) and only 115,770 homes were started (39% of the target).
The Government has so far made only minor changes to the rules, with some emergency reforms for London announced in the autumn, but only limited reforms to the failing Building Safety Regulator and none to the damaging second staircase rules – both of which delay or even prevent the construction or improvement of developments over seven storeys.
Just before the parliamentary recess, the Government released a new draft National Planning Policy Framework that pledges to make it easier to build homes around stations and in towns. The slowdown of building shows why such a bold new framework is needed urgently.
CPS Head of Housing and Infrastructure Ben Hopkinson said:
‘Labour came into government saying all the right things about housebuilding. From Keir Starmer down, ministers claimed to understand the importance of solving our housing crisis in order to boost growth and living standards.
‘Yet in reality, numbers of new housing starts have plummeted. London especially is facing the most difficult housebuilding challenge since the end of World War 2.
‘The Government has stood by the damaging second staircase rules and rewarded the head of the Building Safety Regulator with a peerage, despite the body actively preventing construction from taking place. Changes to the National Planning Policy Framework are welcome but there is every chance the Government will fold to pressure from environmental charities and campaign groups to water them down. They failed to deliver in 2025 but we must hope 2026 shows improved resolve.’
Shadow Secretary of State for Housing, Communities and Local Government, James Cleverly said:
‘Labour are all talk and no action. Their bureaucratic meddling and tax rises are making housebuilding less viable and their refusal to prioritise brownfield land is stifling development.
‘In Labour-run London, housebuilding has totally collapsed and Sadiq Khan is plumbing depths of failure not seen the Second World War.
‘The Government has no plan to deliver the homes Britain needs and the 1.5 million homes target is clearly a dead letter, as are Steve Reed’s vacuous promises.
‘It’s time to stop the talking shop and the tinkering and get on with the bold action Britain needs to get the housing market moving.’
ENDS
NOTES TO EDITORS
- Ben Hopkinson is the Head of Housing and Infrastructure at the Centre for Policy Studies
- ‘A Year of Talk – But Where Are The Houses?’ is available under embargo here
- You can use our interactive data tool to view the housing data for different regions here
- For further comment and media requests, please contact Melisa Tourt on [email protected] or 07399 251110
- Previous CPS research includes ‘The City That Doesn’t Build’ and ‘How Many Homes Does the UK Need?’
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity
Date Added: Monday 12th January 2026
