Britain is scaling back ambitious housing targets and delaying a swathe of sales as the government seeks to control spending aheadโค of a likely autumn election, according toโ documents revealed on Thursday. The move throws into question Prime Minister Rishi Sunak‘s commitment to building 300,000 homes a year by the mid-2020s, a key pledge made inโฃ 2019.
The policy shift impacts housing associations โand developers reliant on government โfunding, โperhaps slowingโ construction and exacerbating anโ existing housing shortage. With affordability already stretched โand demand outstripping supply,theโ changes โcould further limit options for prospective homebuyers and renters,while also affecting the broader โeconomy thru reduced construction activity.โข
Internal documents from the Departmentโค for Levelling up, Housing and Communitiesโ (DLUHC) show a pause on new โคprocurement for affordable homes, alongside a reviewโ of โexistingโ programmes. A planned secondโ wave of a ยฃ11.5 billion affordable Homes Program will be delayed, and the government is seeking to renegotiate contracts to reduce costs, The Times reported, which first revealed the documents.
“Weโ areโข committed to building the homes โขthe country needs, but it’s important we do so in a way that is sustainableโ and represents value โfor money for taxpayers,” a โขDLUHC spokesperson said. “We are reviewing the Affordable Homesโ Programme toโค ensure it continues to meet these priorities.”
The slowdown comesโ as sunak’s government faces pressure to rein in public spending before a general election expected this year. The housing sector, a significantโค driver of economic growth, is now facing increased scrutiny. Housing Secretary Michael Gove has previouslyโ expressed โconcerns about the quality ofโค new builds โขand the needโค for more sustainable development.
The documents indicate the government โisโ also considering changes to planning rules to prioritizeโฃ brownfield sites -โ previously developed land – over greenfieldโข sites, โฃaiming to protect countryside areas. This aligns with broader environmental goals but could โfurther complicate โขand slow โฃdown the development process.
The National Housing Federation,which represents housing associations,warned that โdelaying investment would have “serious consequences” for the sector and those relying on affordable โhousing. “At a time when the need for affordable housing is โgreater than ever, this pause will only worsen the crisis,” a spokesperson said.