Housing delivery is expected to drop over the next five years, even after recent planning reform, as demand for new homes remains low, according to Savills.
Savills forecasted that 840,000 new homes are likely to be completed by 2028/29, missing the Government’s 1.5 million target.
New homes completions fell by 6.5% in the year to March 2024, down to 198,600 homes.
This drop was expected after Help to Buy ended in March 2023.
For 2024/25, Savills estimated that completions dropped again to 180,700 homes, using EPC data.
Dan Hill, from the research team at Savills, said: “Based on current policy and trends, housing completions are likely to remain low, between 160,000 and 170,000 per year over the next few years.
“While it is possible to exceed this, demand support would be needed.
“Even with this, delivery will be constrained by the speed at which the housebuilding sector can expand its supply chains and labour force.”
Hill added: “This means completions are still likely to fall short of the Government’s target.
“At most, we think very significant demand support could push completions to 1.2 million new homes by March 2029.”
