Housing: New Homes Target

Lord Young of Cookham Excerpts

Thursday 24th April 2025 Lords Chamber

Asked by

[Lord Young of Cookham]

To ask His Majesty’s Government whether they will meet their target of building 1.5 million new homes by 2029.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, the Government remain committed to our ambitious target of delivering 1.5 million homes over this Parliament. We have already taken decisive action to increase the supply of new homes, including bold reforms to the planning system and the launch of the new homes accelerator to tackle delayed housing schemes. In our Spring Statement, we announced a £2 billion down payment to deliver 18,000 new social and affordable homes and we are investing £600 million in construction job training that will help deliver those further homes.

[Lord Young of Cookham (Con)]

My Lords, I welcome the measures the Government have just mentioned to increase supply, but is not the real threat now to the Government’s ambitious target the lack of effective demand? Housebuilders will not build unless there is a buyer, and with the recent increase in stamp duty and the reduced growth forecasts, there is now uncertainty in the market. What is the role of the Government’s promised new mortgage guarantee scheme, due in a few weeks’ time, in rebuilding that confidence, and, crucially, will it help first-time buyers with a deposit for their first home?

[Baroness Taylor of Stevenage (Lab)]

I agree with the noble Lord that we have to pay attention to the demand side as well; today’s under-30s are less than half as likely to be home owners as those of the same age in 1990, so there are real affordability challenges which we are determined to tackle. In addition to increasing the supply of homes, we have committed to launching a new, permanent comprehensive mortgage guarantee scheme, meaning that first-time buyers will be able to take their crucial first step on the property ladder with only a small deposit. New details of that will be announced in due course. Alongside that, the Economic Secretary to the Treasury has written to the Financial Conduct Authority setting out the Government’s support for its proposal to review mortgage rules. The Government have made it clear that they want the FCA’s review to be as ambitious and as rapid as possible.