Government Sees Growth in New Home Construction

The UK government has announced encouraging signs of recovery in housebuilding, reporting an 18% increase in new build starts in the year ending September 2025. According to official statistics, 117,980 new homes began construction during this period, up from the previous year. This progress is part of the government’s broader ambition to deliver 1.5 million new homes.

Between July and September 2025 alone, new build starts rose by 3% to 29,620 compared with the same quarter in 2024. Since the start of the current Parliament on 9 July 2024, an estimated 309,600 new homes have been completed, representing over a fifth of the government’s overall target.

Housing Secretary Steve Reed emphasised the government’s commitment: “I said I will build 1.5 million homes and I meant it. Thanks to our changes to planning laws we’re now seeing the green shoots of recovery, with an 18% increase in work starting on new homes compared to the previous year. We will keep on streamlining the planning system and investing in social housing so we can end the housing crisis we inherited and give everyone the chance to live in the home they dream of.”

Industry Experts Highlight Need for Strategic Housing Development

While the increase in new home starts is welcomed, Propertymark, a professional body for estate agents and letting agents, has urged caution. Timothy Douglas, head of policy and campaigns at Propertymark, stressed that simply increasing the number of homes will not solve the housing crisis.

“Any increase in housing supply is welcome, and these figures offer some much-needed optimism after a prolonged period of uncertainty across the sector,” he said. “However, boosting headline numbers alone will not solve the housing crisis. What matters just as much is ensuring the right homes are being built in the right places, with a mix of tenures that reflects local need and supports first-time buyers, renters, and those seeking genuinely affordable housing.”

Douglas further highlighted the importance of infrastructure and planning: “For growth to be sustainable, new development must be matched with investment in infrastructure, transport and local services, alongside a planning system that is clear, consistent and deliverable for all parties. Confidence among developers, lenders, and consumers remains fragile, and continued reform must focus on providing long-term certainty rather than short-term fixes.”

He concluded by noting the ongoing challenges: “Propertymark members on the ground see daily the mismatch between supply and demand, and while these green shoots are encouraging, there is still significant work ahead if the UK government is to meet its ambitions and deliver homes that communities can thrive in for generations to come.”

What This Means for Landlords and Letting Agents

For landlords and letting agents, the government’s reported progress signals potential growth in housing supply, which could impact rental markets and investment opportunities. However, the emphasis on building homes in the right locations and supporting first-time buyers suggests that demand pressures will persist in certain areas, particularly where affordable housing remains scarce.

The call for improved infrastructure and a more consistent planning system may also influence development timelines and the availability of new rental properties. Landlords should monitor these developments closely, as changes in housing supply and policy could affect tenant demand and rental values in the coming years.

Looking Ahead

The government’s target of 1.5 million new homes remains ambitious, and while recent statistics show positive momentum, the housing sector faces ongoing challenges. Sustainable growth will depend not only on increasing the quantity of homes but also on ensuring they meet local needs and are supported by adequate infrastructure.

Landlords and agents should remain aware of policy changes and market conditions as the government continues to implement planning reforms and invest in social housing.

Suggested internal link anchors

• new build starts
• housing crisis
• planning system reforms
• social housing investment
• first-time buyers support
• housing supply challenges
• UK rental market
• infrastructure investment
• housing demand and supply
• property market confidence

TLA update

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