Housebuilding is set to tumble in the coming year – leaving Labour’s plans to boost construction in tatters.
The Office for Budget Responsibility (OBR) said it expects just 220,000 new homes in 2026-27 – down from an average of 260,000 a year in the early 2020s.
The projected fall is a humiliation for Labour after it vowed to build 300,000 homes a year in this Parliament – or a total of 1.5m by 2029.
The OBR said it did expect the 300,000 level to be reached – but not until 2030-31 as reforms to planning rules eventually pay off.
Industry chiefs said yesterday’s Spring Statement from Chancellor Rachel Reeves was a ‘missed opportunity to deliver the decisive action the construction industry urgently needs’.
Brian Berry, chief executive of the Federation of Master Builders, said: ‘This Spring Statement could have set out concrete steps to support small and medium-sized builders to deliver the homes the country desperately needs’
Down tools: Chancellor Rachel Reeves, pictured, pledged for 300,000 new homes to be built each year. But the OBR said it expects just 220,000 in 2026-27
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