Source · Select Committees · Public Accounts Committee
Recommendation 30
30
Accepted
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 Summary
The government states it agrees with the recommendation (despite the item being a conclusion) but refutes the claim that Homes England missed targets, stating it exceeded housing delivery targets in 2023-24, and commits to developing a new Affordable Homes Programme and publishing a housing strategy after the Spending Review 2025.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: after Spending Review 2025 6.2 In 2023-24 Homes England exceeded their housing delivery targets by enabling the completion of 32,320 homes against a target of 29,641, facilitating the start of construction for an additional 35,676 homes against a target of 32,967 and unlocked land that is capable of delivering 26,273 further homes against a target of 25,788. 6.3 In terms of affordable housing, Homes England had a target of 19,500 completions in 2023-24 but exceeded this by achieving 22,115 completions. Homes England are currently working with MHCLG officials to design the new AHP programme with new targets set to match the government’s ambition and reflect current market conditions. 6.4 MHCLG will publish a housing strategy which will set out a long-term vision for a housing market that works for communities, builds 1.5 million high-quality homes, and the biggest increase in affordable housing for a generation. It will include the actions that government will take to reach this vision, building on the announcements already made, and providing long-term certainty for the market.