The new Labour government, entering office amidst a historic decline in housing starts, faces a daunting task in fulfilling its ambitious pledge to boost construction, Bloomberg reports.
Data released by the Office for National Statistics on Friday revealed that the number of new homes starting construction in England during the year ending June plummeted to fewer than 88,000, a drastic fall from over 190,000 a year earlier. This marks the lowest 12-month total since the end of 2009, coinciding with the housing market crash triggered by the global financial crisis.
The figures underscore the uphill battle Prime Minister Keir Starmer faces in realizing his goal of building 1.5 million homes over the current parliamentary term, a target that translates to 300,000 new homes annually. Starmer, who secured a landslide victory in the July 4 election, promised to address the housing crisis plaguing younger voters by streamlining planning regulations and promoting development.
However, the government faces headwinds from market forces. Private developers, facing rising borrowing costs for themselves and homebuyers, have drastically reduced housing starts. Over the past year, the number of new homes initiated by private developers more than halved to 65,550, significantly below typical levels.
