UK Housing Crisis Is Missing Its 'Big Bang' Moment

The power of optimism and missionary zeal aren’t to be underestimated, but they’re being asked to do some heavy lifting in the case of Britain’s undersupplied housing market. Chancellor of the Exchequer Rachel Reeves told reporters this week to “be in no doubt” that Labour would get the country building again, reaffirming an annual target of 300,000 homes that eluded the Conservatives for years. The incoming government can’t be faulted for ambition; the question is whether reality can match the rhetoric.

The near-term prognosis isn’t good. Net additional dwellings — the key metric for housing supply, which includes conversions and demolitions as well as new builds — are forecast to decline sharply this year, having already undershot the previous government’s target by more than 20% in the 12 months through April 5. Most indicators are pointing the wrong way. Housing starts and completions both weakened in the last financial year, and planning approvals dropped in the first quarter to their lowest in more than eight years. There's a severe shortage of local authority planning officers — one reason why applications aren’t moving at a brisker pace — and the construction workforce is declining.