New data released by the Department for Levelling Up, Housing and Communities has revealed that the number of homes being built in England is actually higher than previously thought. This new information has significant implications for the upcoming election and the parties’ plans for housebuilding.
The conventional understanding of housebuilding in England, based on a quarterly dataset, shows a significant decline in the number of homes being built since the 1960s and 70s. However, this dataset only takes into account housing starts and completions, using data on building warranties to track progress. This method has been criticized for not accurately reflecting the true number of homes being built.
It turns out that there is another dataset, also published by the Department for Levelling Up, Housing and Communities, which measures housebuilding differently. This dataset takes into account the entire housing stock and measures the change in the number of homes from year to year. This “net addition” method provides a more accurate picture of the housing market.
When looking at this dataset, it is revealed that the number of homes being built in recent years is actually higher than the average in the 1970s. This new information shows an average of 207,000 homes being added to England’s housing supply in the past decade, compared to an average of 198,000 between 1970 and 1980.
This new understanding has significant implications for the party manifestos and their housebuilding targets. For example, when comparing the current housebuilding numbers to Labour’s target of 300,000 homes, the gap is only 65,000 rather than the previously thought 140,000.
However, questions still remain about the feasibility of these targets and whether they can be achieved. While Labour has committed to planning reform, the only party to make a specific increase in council housebuilding a priority is the Liberal Democrats, who have promised to spend £6.2bn on 150,000 social homes.
Despite this new information showing a slightly less dire picture of the housing market, it is clear that more homes will be needed in the coming years, especially with high house prices and record levels of immigration. The upcoming election will be crucial in determining the future of housebuilding in England and how the government plans to address this pressing issue.