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Government housing target ‘out of reach’ as completions fall in Q2

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  • 30/09/2021
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Government housing target ‘out of reach’ as completions fall in Q2
The number of completed homes fell quarterly by 10 per cent to 43,660 in Q2 while new building starts dropped by five per cent to 42,900, figures have shown.

 

This is according to data from the Department of Levelling up, Housing and Communities (DLUHC), formerly the Ministry of Housing, Communities and Local Government. 

Due to restrictions imposed on the construction sector during the pandemic, the measures were up 167 per cent and 150 per cent respectively compared to last year. 

The drop in starts is the first decrease since Q2 last year.

Completions are 10 per cent down on their peak in March 2021 and also the first decrease since Q2 last year.

 

Government target ‘out of reach’

Danny Belton, head of lender relationships at Legal & General Mortgage Club, said the housing market had been under “considerable strain” due to material and labour shortages which slowed the development of new homes. 

He added: “This has put the government’s target of building 300,000 new homes each year yet further out of reach, but we must find solutions to solve the issue of housing undersupply. Its recent commitment to provide £8.6bn in funding for affordable housing will undoubtedly help, but other solutions are also needed. 

“If homeownership is going to remain possible for future generations, then alternative construction methods, like modular housing, also need to be considered.” 

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