In England, the issue of housing has been a focal point of discussions, particularly during the first year of the Labour Party’s tenure. Recent reports indicate a decline in the number of new houses built, while simultaneously, applications for new construction have risen. The contrast in these figures highlights a complex landscape within the housing market, where goals for new builds are seemingly at odds with the immediate results being seen on the ground.
According to data from BBC Verify’s housing tracker, approximately 201,000 homes received their first Energy Performance Certificate (EPC) in the year leading up to June 2025. This figure represents an 8% decrease from the previous year, a downward trend that had initiated during the previous Conservative government. On the other hand, data from the Planning Portal revealed that applications for permission to build new homes outside of London surged by 49% within the first half of the year compared to the last, suggesting a growing interest in housing development, albeit not immediately transforming into actual new homes.
A spokesperson for the government commented on the current situation by acknowledging that they have “inherited an acute and entrenched housing crisis.” Despite the current challenges, they remain committed to meeting a target of constructing 1.5 million homes by the next general election, aiming to rekindle the dream of homeownership for many. Energy Performance Certificates are noteworthy as they are legally required for every new property shortly after completion; hence they serve as a reliable indicator for new housing activity. However, the process of transitioning from planning permissions to completed homes can be lengthy, often spanning many years.
Experts caution that the outlined strategies will require a notable acceleration in the decision-making process regarding applications if the government hopes to see tangible results before the next election. This sentiment was echoed by Housing Minister Matthew Pennycook, who noted the potential for low housing figures to persist for some time while emphasizing the need for significantly ramping up construction in later years of the parliamentary term.
To put things in perspective, the ambitious target of delivering 1.5 million homes over five years translates to roughly 300,000 new properties annually. Notably, this level of construction has not been witnessed since the late 1960s. Periodic historical comparisons suggest that factors such as planned demolitions during that era contributed to keeping net housing numbers in check similar to current levels. The context offers valuable insights as local authorities were assigned housing targets in December 2024, designed according to existing housing stock and affordability levels.
Illustrating the real-life effects of the housing crisis, one resident from Milton Keynes, Lindsey, shared her concerns about affordability in the housing market. As a nursery practitioner, she emphasized that without her current council property, living in the area would have been financially unfeasible for her, pointing to a pressing need for more affordable housing options for working individuals.
Councillor Peter Marland of Milton Keynes echoed similar sentiments about the government’s capabilities in meeting housing targets, stressing regional advantages that might allow them to exceed such limits. Contrarily, in Eastbourne—where housing assessments are significantly lower than the set targets—residents like Amber and Bella have found it increasingly difficult to secure affordable housing. The council in Eastbourne faces geographical constraints, being bordered by natural parks and the English Channel, further complicating their development initiatives.
Overall, while there is optimism in the increase of planning applications, experts highlight the critical nature of effective strategies to convert these applications into completed homes. The Planning Portal’s data shows that requests for new buildings have surged outside London, yet turning these requests into living spaces may take several years, warranting a need for sustained commitments from government authorities as well as local councils.
