New housing secretary vows 1.5 million homes by 2029 despite industry warnings
Steve Reed pledges an 'acceleration package' and threatens sanctions on developers as builders cite rising costs and planning delays
The new housing secretary, Steve Reed, said the government is "absolutely committed" to delivering 1.5 million new homes in England by 2029 and promised an "acceleration package" to speed planning approvals and get "spades in the ground." Reed, moved to the role last week after Angela Rayner's resignation, said on the BBC that meeting the target is "what we're going to do" and that he would work "in partnership with the developers and with the builders." He warned there would be sanctions for developers who "dragged their feet," without specifying the measures.
Reed said his priority was to remove barriers to construction and to fast-track planning applications. He told the BBC he would draw up an acceleration package aimed at approving more planning applications and increasing the pace and scale of building, asserting that developers "make money from going ahead with construction" and should not delay projects.
Industry leaders warned the target presents a "huge challenge" given mounting pressures on housebuilders. The Home Builders Federation said the sector is facing rising regulatory costs and taxes, compounded by delays in processing planning applications. BBC Verify's Housing Tracker showed the number of new homes in England fell during Labour's first year in office, continuing a trend that began under the previous Conservative government, although applications to build more homes have increased over the past six months.
Speaking during a visit to a development near Houghton Regis in Bedfordshire, Reed also acknowledged workforce issues and supply-cost pressures affecting smaller contractors. Garry Dixon, who runs a construction company working on smaller residential sites, said material prices have risen sharply. "Three years ago you were getting bricks at 75p, 80p a brick and now they're like £1.20 a brick," he said, adding that more investment in training and apprenticeships was needed but would not be a quick fix.
The 1.5 million-home pledge was a central element of Labour's general election manifesto and covers the expected parliamentary term through 2029. Reed inherited the housing brief from Angela Rayner after her resignation over shortcomings in tax payments related to a flat purchase; in interviews he described her departure as "very painful" and said he had offered personal support while also acknowledging the political reality of the events being played out in public.
Conservative critics dismissed the announcement. Shadow housing secretary James Cleverly said "Everyone knows Labour can't deliver on their housing promises," arguing that the government has been "anti-business and anti-growth" since taking office. The Conservatives said Labour's housing pledges "are for the birds." Reed's commitment comes as legislation intended to reform the planning system and speed housebuilding progresses through Parliament.
Market observers say Reed's pledge will test ministers' ability to coordinate planning reform, fiscal incentives and industry capacity. Builders face higher input costs, skills shortages and local planning backlogs, all of which can slow delivery even if approvals rise. Reed's proposed sanctions on developers who fail to progress could include financial penalties or planning consequences, though he did not detail specific mechanisms.
Ministers will need to demonstrate how the acceleration package and planning reforms will translate into completed homes rather than approvals alone. Reed said his role was to "get every barrier out of the way that is stopping that construction going ahead," and indicated a collaborative approach with developers while reserving the right to take action where progress stalls. The government's ability to meet the 1.5 million target will be measured over the coming years against both approvals and the pace of actual construction on the ground.