Britain is scaling back ambitious housing targets and delaying a swathe of sales as the government seeks to control spending ahead of a likely autumn election, according to 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 in 2019.
The policy shift impacts housing associations and developers reliant on government funding, perhaps slowing construction and exacerbating an existing housing shortage. With affordability already stretched and demand outstripping supply,the changes could further limit options for prospective homebuyers and renters,while also affecting the broader economy thru reduced construction activity.
Internal documents from the Department for Levelling up, Housing and Communities (DLUHC) show a pause on new procurement for affordable homes, alongside a review of existing programmes. A planned second wave of a £11.5 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.
“We are committed to building the homes the country needs, but it’s important we do so in a way that is sustainable and represents value for money for taxpayers,” a DLUHC spokesperson said. “We are reviewing the Affordable Homes Programme to ensure it continues to meet these priorities.”
The slowdown comes as sunak’s government faces pressure to rein in public spending before a general election expected this year. The housing sector, a significant driver of economic growth, is now facing increased scrutiny. Housing Secretary Michael Gove has previously expressed concerns about the quality of new builds and the need for more sustainable development.
The documents indicate the government is also considering changes to planning rules to prioritize brownfield sites - previously developed land – over greenfield sites, aiming to protect countryside areas. This aligns with broader environmental goals but could further complicate and slow down the development process.
The National Housing Federation,which represents housing associations,warned that delaying investment would have “serious consequences” for the sector and those relying on affordable housing. “At a time when the need for affordable housing is greater than ever, this pause will only worsen the crisis,” a spokesperson said.