Housing supply falls 6% year-on-year

Housing supply has fallen 6% year-on-year, according to official statistics.

The figures from the Ministry of Housing, Communities and Local Government show there were 221,070 net additional dwellings in 2023/24, down from 234,290 the previous year.

The figure is the lowest since 2015/16, if you exclude the pandemic impacted 2020/21.

Net additional dwellings includes new build, changes of use and conversions minus demolitions.

Newly-built homes fell by 7%, from 212,360 to 198,610.

The new Labour government has a target of building 1.5million homes over the next five years.

Richard Cook, senior economics director at consultancy Pegasus Group, said: “Today’s figures are a fresh reminder of the stark challenge facing the Labour government.

“The number of net additional dwellings is almost a third below the Government’s target of delivering 300,000 homes every year, and if you look back over the past five years the story is much the same.”

Cook added that the government’s new National Planning Policy Framework, will not be enough to bridge the gap between current supply figures and Keir Starmer’s target.

>>See also: The ins and outs of Labour’s new National Planning Policy Framework

He said: “The industry will need wider support and incentives to get building.”

MHCLG also last week published figures showing there were 62,290 homes built for affordable tenures in 2023/24. This was down 2% year-on-year but was the second highest increase since 2015.

Decreased affordable rent completions of 4,300 homes across 2022/23 and 2023/24 were matched by a 4,000 increase in homes for social rent over the two years.