‘I refuse to admit defeat’ on 1.5 million homes target, says Rayner

The housing secretary has refused to concede that the government will no longer be able to meet its goal of building 1.5 million homes within this parliament.

The Labour party entered government in July 2024 promising a huge increase in housebuilding to deliver an average of 350,000 homes a year over its five-year parliamentary term.

However, housebuilding numbers have remained stubbornly low in the years since, with the country hit by a viability crisis exacerbated by geopolitical shocks.

Roughly 208,600 homes were added to England’s housing stock in Labour’s first year in office (2024/25), which was lower than the year prior.

Provisional estimates suggest that between 9 July 2024 and 20 September 2026, there was a net addition of 437,900 homes, 29% of the total target and well below the level required to meet it.

Speaking to the House of Commons housing, communities and local government committee yesterday (Wednesday), Angela Rayner said the government “knew it was a difficult target” when it was set.

She noted that, since she returned to for her second stint as housing secretary in July 2026, the market had been suffering the impact of a “war in the middle east that has increased costs”.

The housing secretary acknowledged challenges stemming from the construction inflation and the cost of living, but insisted: “I’m not giving up on that target. I refuse to admit defeat on it”

“We always knew that the changes would take time to come in,” she added, pointing to changes to the National Planning Policy Framework and the Social and Affordable Homes Programme as measures that would “ensure that delivery ramps up and is sustainable beyond this parliament and into the next”. She also claimed new starts were up roughly 20% on last year.

Committee chair Abena Oppong-Asare asked what target the government was now aiming at, given the likelihood that it wouldn’t meet its target. Rayner refused to concede the premise of the question.

“You invite me to concede defeat on the 1.5 million homes target. I refuse to,” she said, while insisting that she was “realistic about the challenges we face in meeting it”.

Asked by committee members whether the government’s desire to increase housing delivery by councils would risk reducing overall delivery, Rayner acknowledged that this was a risk but one that she had “eliminated” through her approach to grant allocations from the SAHP.

“If you saw the allocations that were given from the £10bn […] a lot of it went to social housing providers,” she said. 

“We recognised that social rent is the most crucial thing. We need more homes for social rent and therefore housing associations make a vital contribution”.

She denied that there had been a change of policy on this matter since Andy Burnham took over as prime minister, while acknowledging that the emphasis had been “tilted” towards councils. 

“We recognise the valuable contribution housing associations make to the housing stock, but we do want to see a significant increase in council housebuilding as part of the programme,” she said.

“So I wouldn’t say there has been a change of policy. What I would say is it has been tilted more heavily towards supporting councils in building the council homes that they need.”