Navigating the Complexity of Delivering New Homes

Navigating the residential development market is complex, and whilst it's clear that the government is committed to addressing the housing crisis, significant challenges remain.

Recent analysis from Dataloft (2024) confirms this and highlights a robust governmental push to tackle the housing crisis, with increasing public support for new developments. The numbers, however, reveal a stark reality: only 114,000 new homes were built in the first half of 2024 in England and Wales—11% fewer than in the same period of 2022. To meet the ambitious Labour target of delivering 1.5 million homes over the next five years, the National House Building Council (NHBC) suggest that the rate of new home delivery must more than double. The forthcoming Planning and Infrastructure Bill, along with new home-buyer incentives and critical infrastructure investments, is seen as vital to supporting that growth.

Our own research, presented in our recent report, The Productivity Engine, points to a more complex narrative. While the Dataloft data points to the urgency of increasing housing supply, our findings reveal that the challenges are deeply rooted in systemic issues. Restrictive planning structures and insufficient public sector investment have not only exacerbated the housing shortage but have also led to unsuitable housing options, significantly impacting young adults' ability to leave home. This isn't just a matter of statistics; it's a matter of human impact. Access to safe, affordable housing is a basic human right, and the current situation is stretching finances, compromising safety, and affecting mental well-being across communities.

To address these challenges, our contributors offer valuable perspectives on the way forward. Andrew Taylor, Group Planning Director at Vistry Group, emphasises the importance of mixed-tenure communities that foster social cohesion and economic resilience. Ashley Perry, Investment Director at Apache Capital Partners, argues that unlocking the economic potential of regions like the Oxford Cambridge Arc requires a holistic approach to housing development that includes build-to-rent, build-to-sell, and affordable units. Meanwhile, Katy Lock, Director – Communities at TCPA, supports the need for a national spatial plan and the development of new settlements to address the crisis sustainably.

The divergence between the Dataloft statistics and our own internal findings underscores the complexities of the residential market and the urgent need for innovative, systemic solutions. I encourage you to download The Productivity Engine Report to explore these insights further and understand the opportunities and challenges that lie ahead.

Download a copy of The Productivity Engine Report to find out more.