Henry Boot warns planning delays imperil 1.5 million homes target as councils grow under-resourced
Housebuilder says under-resourced planning authorities are slowing the push for new homes, though Labour reforms are lifting consent rates
The government’s target of delivering 1.5 million new homes by 2030 is at risk, Henry Boot warned, because under-resourced local planning authorities are delaying decisions and slowing the opening of new outlets across the home-building industry. The Sheffield-based developer told shareholders that planning delays are extending timelines for approvals and, in turn, delaying openings that are essential to meeting the goal.
Henry Boot said Labour’s planning reforms are boosting consent rates and even increasing success at appeals, but the group cautioned that the bottlenecks remain a meaningful brake on supply. The comments come as other builders also flag planning-system frictions, underscoring a sector-wide debate over how quickly homes can be brought to market while policy is reviewed.
The company, which is smaller than industry giants, expects to complete about 240 to 250 new homes this year and has a medium-term target of roughly 600 per annum. In the first half of 2025, Henry Boot said buyers were reserving homes at an average rate of 0.45 per week at each active development, down from 0.5 in the same period a year earlier. The group noted that buyers were taking longer to commit in a climate it described as uncertain, and its net private reservation rate for the six weeks ending Sept. 14 fell to 0.38. Still, management argued there remains a long-term structural undersupply of housing in the regions it serves.
Despite softening near-term demand, Henry Boot reported a 19% rise in revenue to £126.4 million for the six months ended June 30, driven by land and property disposals, with a pre-tax profit of £7.8 million. The board lifted the interim dividend by 5% to 3.24 pence alongside the results. Chief executive Tim Roberts said the first half was solid in uncertain markets and highlighted early progress from investments in Hallam Land, which the group views as positioning it to benefit from forthcoming changes to the National Planning Policy Framework.
“With 80% of budgeted sales achieved, we are confident of meeting full-year expectations, and we see clear opportunities within our high-quality portfolio to hit our medium-term growth and return targets,” Roberts said.
The shares in Henry Boot edged up by 0.1% in early trading, signaling some investor steadiness despite the mixed demand backdrop.
The broader industry context remains unsettled. Bellway has echoed warnings about delays at local authorities, while MJ Gleeson has urged further planning reform. Barratt Developments and Redrow have said the government must do more to support first-time buyers as part of any housing-policy push. The Berkeley Group, meanwhile, cautioned Chancellor Rachel Reeves against a renewed tax raid on developers in the upcoming Budget, arguing such measures would dampen the market and hinder delivery of affordable homes.
Taken together, the notes from Henry Boot and its peers illustrate a sector grappling with inherited planning-backlog challenges while awaiting policy updates that could accelerate approvals and, in turn, housing supply.