As the General Election approaches, the housing crisis remains a critical issue, with both major parties, the Conservatives and Labour, putting forward ambitious plans to address it. In this blog, we’ll compare the key proposals from each party regarding new homes building, examining how they aim to tackle the shortage and what it means for the future of the UK housing market.

Both parties have set ambitious targets for new home building, with the Conservatives aiming for 1.6 million and Labour targeting 1.5 million. The slight difference in numbers is less significant than their differing approaches to achieving these goals.

One of the most notable differences is the type of housing each party prioritises. The Conservatives focus on homeownership and market-driven development, while Labour emphasises affordable and social housing, aiming to address the needs of lower-income households and those in social housing.

Labour’s manifesto includes a stronger focus on sustainability, with a commitment to making new homes zero-carbon. This aligns with broader environmental goals and addresses concerns about climate change. The Conservatives also mention environmental considerations but with less emphasis on zero-carbon homes.

Both parties recognise the need for planning reform but propose different approaches. The Conservatives focus on simplifying and speeding up the process, while Labour aims to give local authorities more control and ensure developments meet community needs.

The Conservatives plan to extend the Help to Buy scheme, directly supporting first-time buyers. Labour’s focus on affordable and social housing indirectly supports first-time buyers by increasing the overall supply of housing and potentially reducing competition for market-rate homes. Their proposed Freedom to Buy scheme - a variation of the Tory's Mortgage Guarantee Scheme - aims to help first time buyers make the first step on the property ladder.

For voters, the choice between these approaches will depend on individual priorities and perspectives on how best to address the UK’s housing crisis. Both plans aim to significantly increase housing supply, but their methods and intended beneficiaries differ markedly.

The year to March 2024 saw the fewest new housing sites consented than during any 12-month period since the data collection commenced in 2006.

Planning permissions are a lead indicator of future supply levels, and the latest numbers confirm industry warnings about the impacts of changes to the planning system and the ongoing lack of support for hard-pressed first-time buyers.

A new report from there Home Builders Federation, which includes data for the beginning of 2024, shows:

- The number of units achieving planning permission in the year ending Q1 2024 was 236,644, the lowest 12-month total for almost a decade - since Q3 2014. Year on year, this is a 13% drop, and 22% on the year to Q1 2022.

- At 10,406, the rolling 12-month total of new sites consented was the lowest recorded in any 12-month period in more than 18 years and 13% fall on the 12 months to Q1 2023.

- Looking regionally, some areas saw even greater drops in the number of units being approved. In London, 7,613 units were approved in Q1 2024. This is the lowest quarterly figure since 2012. Additionally, it is a 39% drop on the same period last year and a 51% drop compared to Q4 2023.

- Bad news for our region in the East Midland which saw a significant 47% drop on the previous quarter and 36% drop compared to Q1 2023.

On the back of the report Stewart Baseley, executive chairman at the Home Builders Federation, says: “Amidst a deepening housing crisis and with house building levels already falling sharply, these numbers present a bleak picture for future housing supply.

“The report also puts into stark perspective the challenges a new Government faces to meet its housing ambitions with a pipeline smaller even than during smaller even than during 2009 and the depths of recession.

“Reversing the trend will require immediate and drastic action to remove the significant barriers to housing delivery we face.

“We need to see immediate action to reverse the damaging changes made in recent years to the planning system and to ensure local authorities have the capacity to deal effectively with permissions.

“We also need to see effective support put in place to help buyers purchase high quality, energy efficient new homes. For the first time in many decades, there is no effective Government support in place for prospective buyers."

So, is this just manifesto talk from the political scriptwriters or is there really a master plan to overturn these extremely bleak figures?

What do you think?