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New homes: What's happened to the government's housebuilding target? New homes: What's happened to the government's housebuilding target?
(3 months later)
The government has been accused of watering down its housing target following the threat of a rebellion from some Conservative MPs. The government is not on track to meet its 300,000 new homes in England target, according to a group of MPs.
The changes will make it harder to reach the target of 300,000 new homes a year in England, by the mid-2020s. But the Levelling Up Committee said it could still meet its goal to build one million homes during this Parliament.
Prime Minister Rishi Sunak had been trying to bring in binding targets, but the government now says: "Housing targets remain, but are a starting point, with new flexibilities to reflect local circumstances." The government has proposed changes to the planning system to help build more houses, but has been accused of watering down its target after some Conservative MPs threatened to rebel.
During her brief premiership, Liz Truss had said she wanted to scrap "Stalinist" housing targets. Prime Minister Rishi Sunak had been trying to introduce binding targets, but the government now says: "Housing targets remain, but are a starting point, with new flexibilities to reflect local circumstances."
Housing targets to be diluted after revolt from Tory MPs
Michael Gove commits to 300,000 homes target
What is the government's target?What is the government's target?
The target, set out in the 2019 Conservative manifesto, is for "300,000 homes a year by the mid-2020s".The target, set out in the 2019 Conservative manifesto, is for "300,000 homes a year by the mid-2020s".
The figure, which is for England, was unveiled by then Chancellor Philip Hammond in November 2017. The figure, which is for England, was unveiled by then-Chancellor Philip Hammond in November 2017.
"Experts agree that 300,000 new homes a year would start to make inroads on the affordability of housing," he told BBC News. "Experts agree that 300,000 new homes a year would start to make inroads on the affordability of housing," he told BBC News at the time.
The manifesto also pledged to build at least a million more homes by the end of this Parliament, which would be in December 2024 - five years since the current Parliament first sat.
How close has the government come?How close has the government come?
In 2019-20 there were 242,700 net additional dwellings, which fell to 216,490 in 2020-21, partly due to the pandemic. In 2019-20 there were 242,700 "net additional dwellings", but this fell to 216,490 in 2020-21, partly due to the pandemic.
Net additional dwellings is the headline figure for housebuilding, including houses being converted to flats or commercial buildings switching to domestic use, as well as new builds. It also factors in demolished houses. "Net additional dwellings" is the headline figure for housebuilding, and includes houses being converted to flats or commercial buildings switching to domestic use, as well as new builds. It also reflects demolished houses.
"The government will miss their 300,000-homes-a-year manifesto pledge by a country mile," former Housing Secretary Robert Jenrick told MPs on 10 May 2022."The government will miss their 300,000-homes-a-year manifesto pledge by a country mile," former Housing Secretary Robert Jenrick told MPs on 10 May 2022.
He predicted that the figure for 2019-20 would be "the high watermark of the number of homes built in this country for several years to come". He predicted that the figure for 2019-20 would turn out to be "the high watermark of the number of homes built in this country for several years to come".
Ministers pledge votes on neighbours' extensions In terms of the one million target, between 2019 and 2022 (the latest available data), 687,390 additional homes were built in England.
Planning reforms paused amid Tory MP anger This means - in order to meet the one million target - more than 300,000 homes must be built before December 2024.
But the prime minister's official spokesman said the government was still committed to the 300,000 target, which was "central" to its "levelling-up" ambitions.
How many homes were being built previously?How many homes were being built previously?
On average, almost 250,000 homes were built in England in each year of the 1970s.On average, almost 250,000 homes were built in England in each year of the 1970s.
But there was also a great deal of demolition, largely due to slum clearance, which made the overall figure just under 200,000 a year. But there was also a great deal of demolition, largely due to slum clearance, which made the overall net figure just under 200,000 a year.
The 1990s saw many fewer homes built but also fewer demolitions, making the overall average about 150,000 a year.The 1990s saw many fewer homes built but also fewer demolitions, making the overall average about 150,000 a year.
This annual figure then rose until the 2007-08 financial crisis, recovering in the mid-2010s. This annual figure then rose until the 2007-08 financial crisis, when housebuilding stalled, before recovering in the mid-2010s.
Are new homes affordable? What is the government doing to boost housing affordability?
Even 300,000 homes a year would make no difference if they were the wrong sort of properties, according to housing charity Shelter. Even hitting the annual target wouldn't necessarily address the current housing shortages if they are the wrong sort of properties, according to housing charity Shelter.
"There is no point in building 300,000 homes a year if the vast majority are overpriced flats and houses that people on average or lower incomes can't afford," a representative said. "There is no point in building 300,000 homes a year if the vast majority are overpriced flats and houses that people on average or lower incomes can't afford," it said.
"The government must make sure any target it sets will deliver the genuinely affordable social homes this country needs.""The government must make sure any target it sets will deliver the genuinely affordable social homes this country needs."
The government's 2020 Social Housing White Paper renewed its affordable-homes programme for 2021-26. The government's 2020 Social Housing White Paper renewed its affordable-homes commitments for 2021-26.
This £11.5bn programme is supposed to deliver up to 180,000 new homes over that period, half with discounted rent and half for affordable ownership. An £11.5bn programme is supposed to deliver up to 180,000 new homes over that period, half offering affordable ownership and half offering discounted rent.
The government's figures on affordable-housing supply show 59,175 affordable homes were completed in England in 2021-22, which was up 13% from last year and similar to the year before. The government's figures on affordable-housing supply show 59,175 affordable homes were completed in England in 2021-22, which was up 13% from the previous year, and about the same as the year before that.
These homes are classified as having:These homes are classified as having:
affordable rent - properties rented by local authorities or other providers at up to 80% of local market rentaffordable rent - properties rented by local authorities or other providers at up to 80% of local market rent
London affordable rent - a separate classification, offered by the Greater London Authority, also capped at 80%London affordable rent - a separate classification, offered by the Greater London Authority, also capped at 80%
social rent - affordable housing usually owned by local authorities and housing associations with rents set by a national rent formulasocial rent - affordable housing usually owned by local authorities and housing associations with rents set by a national rent formula
intermediate rent - rent capped at 80% for key workers, sometimes as part of a scheme to help save up to buy a homeintermediate rent - rent capped at 80% for key workers, sometimes as part of a scheme to help save up to buy a home
shared ownership - purchaser buys between 25% and 75% of a home and pays rent on the remaining shareshared ownership - purchaser buys between 25% and 75% of a home and pays rent on the remaining share
affordable home ownership - homes offered at no more than 80% of local market valuesaffordable home ownership - homes offered at no more than 80% of local market values
How much have prices risen? How much have house prices risen?
When Mr Hammond announced the 300,000-a-year target, the UK average house price was £215,113, according to the Office for National Statistics. When Mr Hammond announced the 300,000-a-year target in November 2017, the UK average house price was £215,113, according to the Office for National Statistics (ONS).
The latest figures for September 2022, show an average price of £294,559, an increase of 37%. The latest figures for June 2023 show an average price of £287,546, an increase of 34%, although that figure is £5,000 lower than the peak in November 2022.
For comparison, over the same period, the consumer price index (CPI) measure of inflation has risen by 21%. For comparison, over the same period, the consumer price index (CPI) measure of inflation has risen by 26%.
What is happening to house prices?
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Michael Gove
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