Source · Select Committees · Public Accounts Committee

Recommendation 30

30

Affordable housing supply hampered by economic challenges, leading to missed Homes England targets

Conclusion
MHCLG has suggested that a significant ramping-up in affordable housing supply, beyond individual strategic sites, would be needed to make a substantial impact on homelessness, requiring new supply in areas where homelessness pressures are particularly acute, including the South East, South West and London. However, it has also conceded that recent economic changes–including inflation, a tight labour market and material shortages–have posed a major risk to the successful delivery of new homes. This is evident in the fact that Homes England, which is sponsored by MHCLG, fell below its central targets in 2022–23 in terms of new home starts, completions, unlocked housing capacity and households supported into home ownership. When compared with 2022–23, the overall number of starts it achieved in 2023–24 fell by 4%, while the number of completions fell by 3%.43
Government Response

A response document is linked to this report, dated 6 May 2025. Response attribution to this conclusion has not been verified. Read the response document ↗