The housing crisis is set to take centre stage at the Labour Party Conference as industry leaders call for urgent government action.
Developers warn that stalled approvals, rising costs, and regulatory hurdles are threatening the government’s target of 1.5 million homes.
Ministers are being urged to reform planning, boost skills, and support first-time buyers to ensure the promises to build houses actually delivers.
Housing crisis takes centre stage
The housing sector will be at the heart of debates at this year’s Labour Party Conference, as developers and planners highlight the growing gap between ambition and delivery.
Approvals and completions continue to lag behind the government’s targets, particularly in London, where just 30,000 new homes were completed in the year to June 2025, a 12% drop from the previous year and far below pre-pandemic levels.
Only 966 new residential schemes were approved in the same period, the lowest number since records began in 2006, illustrating how regulatory, financial, and market pressures are slowing delivery.
Tim Foreman, Managing Director of Land and New Homes at LRG, says the sector is facing a “perfect storm” of rising costs, complex regulations, and weak demand. “Even with planning reform, developers will not build unless they can sell,” he adds.
Industry leaders warn that without urgent intervention and clear policy signals from the government, delays will continue, putting the 1.5 million homes target this Parliament at serious risk.
The Labour Conference is seen as a crucial moment for ministers to demonstrate they can translate ambition into practical, deliverable action.
Housing industry demands reform
Housing experts are pressing for action on both supply and demand fronts.
Lawrence Turner, Director at Boyer, stresses that local plan-making must remain uninterrupted. “Delivery depends on capacity,” he notes, pointing to overstretched local authority planning departments and the urgent need for proper resourcing.
Other key planning reforms urged by the sector include:
- Streamlining planning and environmental regulations to reduce delays without weakening protections.
- Boosting the construction workforce through apprenticeships and training.
- Supporting first-time buyers with equity loans or similar schemes to unlock stalled housing chains.
- Investing in infrastructure for new towns and growth areas to enable large-scale development.
Francis Truss, Partner at Carter Jonas, warns that cumulative regulatory requirements, from affordable housing obligations to biodiversity net gain, are making many sites financially unviable, slowing the pace of development further.
Government measures under Steve Reed
Under Housing Secretary Steve Reed, the government has taken early steps to tackle the housing crisis.
Reforms include mandatory local housing targets, releasing “Grey Belt” land for development, and streamlining local plan-making to reduce delays.
The government has also recommitted to new towns, with the New Towns Taskforce expected to announce the first locations soon. These projects are intended to deliver not only homes but also schools, healthcare, and transport links.
Chancellor Rachel Reeves has pledged higher affordable housing grant funding and made the mortgage guarantee scheme permanent, signalling the government’s intention to put housing at the centre of economic policy.
The Labour Party Conference will be a key test for Steve Reed and ministers to show they can convert policy into tangible delivery.
Developers and housing experts say the opportunity to tackle the crisis is real, but time is running out, and the sector is watching closely to see whether conference commitments translate into homes on the ground.
