Housing Secretary Aims to Accelerate Homebuilding Amid Challenges

Housing Secretary Steve Reed has expressed his commitment to expedite the construction of new homes in England, despite growing doubts about the Labour Party’s target of building 1.5 million homes during this parliamentary term. In an interview with The i Paper, Reed emphasized the urgency of addressing the housing crisis, particularly for young people struggling with high rental costs and limited access to affordable housing.

Reed, who succeeded Angela Rayner after her resignation earlier this month, announced plans to launch an “acceleration package” that aims to streamline the planning process for new housing developments. He highlighted a backlog of applications waiting for approval from the Building Safety Regulator, which could take up to 36 weeks. Reed specifically mentioned collaborating with Sadiq Khan, the Mayor of London, to implement targeted measures to boost housebuilding in the capital.

In recent months, the housing market in Britain has faced significant challenges. Official statistics revealed that planning approvals for new homes fell to a historic low, with only about 7,000 applications granted permission between April and June 2025. This represents the lowest quarterly figure since record-keeping began in 1979 and marks an 8 percent decline compared to the same period in 2024.

During a speech at Labour’s annual conference in Liverpool, Reed unveiled plans to establish 12 new towns across England, with construction expected to commence in three locations before the end of the current parliamentary session. He stated that these developments would not merely consist of housing but would incorporate entire communities equipped with public services, green spaces, and job opportunities.

The government’s approach to new town development will involve enhanced planning powers for development corporations, including the ability to compulsorily purchase land deemed essential for the public good. However, experts caution that achieving the ambitious target of 1.5 million new homes will require a substantial increase in affordable and social housing initiatives. Kate Henderson, Chief Executive of the National Housing Federation, emphasized that without significant investment in these areas, the target remains elusive.

In a positive move, Matthew Pennycook, the Housing and Planning Minister, confirmed a funding commitment of £39 billion for affordable housing. Nonetheless, some of this funding may not be allocated within the current parliamentary term, raising concerns about meeting the housing needs of the population.

As the housing crisis intensifies, homelessness continues to rise, affecting vulnerable groups, including children. Currently, over 1.3 million households in England are waiting for social housing, while private rental prices are outpacing inflation, making it increasingly difficult for individuals to secure affordable accommodation.

Reed remains optimistic regarding the 1.5 million homes target, asserting, “I am absolutely sure [we can do it]…the prime minister has given it to me and I will be held to account.” However, industry experts have voiced skepticism, citing various hurdles such as a skills shortage in the construction sector, rising inflation affecting building costs, and uncertainty surrounding buyers’ ability to afford new homes due to elevated interest rates.

Some lenders have expressed apprehension about proposals from Chancellor Rachel Reeves to allow individuals to borrow larger sums against their income to facilitate mortgage applications. So far, only Nationwide has signaled readiness to accommodate such changes.

Concerns have also emerged regarding the efficiency of processing applications at the Building Safety Regulator, created in response to the tragic Grenfell Tower fire. Housing journalist Peter Apps highlighted the importance of ensuring that expedited applications do not compromise safety and compliance standards. He warned against rushing projects through, which could lead to repeating past mistakes that resulted in significant hazards and costly repairs.

As Reed pushes forward with his ambitious plans, the need for a balanced approach remains critical. Prioritizing quality alongside quantity will be essential to genuinely address the housing crisis facing many in England today.