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30% of homes needed in England not delivered over five years, research finds

Only 74.4% of the 1.5 million required homes were delivered across England in the past five years, leaving a gap of 383,490 homes. 

30% of homes needed in England not delivered over five years, research finds
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England missed its five-year housing targets by 30%, research from Property Buyers Today found, using gov.uk data.

Only 74.4% of the 1.5 million required homes were delivered across England in the past five years, leaving a gap of 383,490 homes. 

In 2024/25, 69.5% of the target was met, the lowest rate in that period, with 91,400 fewer homes delivered than needed.

The lowest delivery was in Castle Point, South East England, where just 3% of required homes were built in 2024/25. 

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Tewkesbury delivered double its target, supplying 819 homes above the quota. 

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Kensington and Chelsea had the highest demand, needing 5,107 homes in 2024/25, but only 8% were delivered.

Saif Derzi, founder at Property Buyers Today, said: “Around 75% of targeted homes have been delivered since 2020, and this is likely to compound the effects of shortages throughout the remainder of the decade. 

“With supply failing to meet demand, more and more first-time home buyers in the UK are facing a fight to get on the property ladder, with competition and prices across the market surging.

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“The compound effect of housing shortages may mean that Brits go back to the drawing board and re-evaluate their priorities for a new home, and instead more and more people are turning to improving their current home rather than going through the stress and expense of waiting for a new property.”

Derzi added: “For those who are renting, they can expect rental pressures to be increased as well as demand fails to be met, and fewer affordable homes may be delivered as well. 

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“This is something leading contender Andy Burnham will be keeping a close eye on if he becomes Labour leader, and he is a big advocate of increasing social housing at scale, among other housing-oriented priorities.

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“Alongside house buyers and general consumers, businesses will also be feeling the effects of housing developments falling well behind the required pace.”

He said: “A domino effect of higher wage expectations and recruitment difficulties is just the starting point as a result of housing shortages.

“It is hard to pinpoint exactly the biggest causes of targets not being hit. 

“The consequential factors go way further than planning permission being refused, with planning delays, higher labour costs, and infrastructure constraints all playing a huge part.”

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