| Data Tracker - Housing Supply |
Key Facts 208,600 net additions 2024-25Down 6% on 2023-24Third consecutive annual fallGovt target: 300,000/yrShortfall: 91,400 homesNew build: 190,600Affordable: 62,290 (28%) in 2023-24 |
In brief: England added 208,600 net dwellings in 2024-25, a 6% fall from 221,410 in 2023-24 and the third consecutive annual decline. The government's target is 300,000 per year, meaning the 2024-25 shortfall was 91,400 homes. Since Parliament met in July 2024, approximately 275,600 net additional homes have been delivered against a five-year target of 1,500,000. Of 2024-25 additions, 190,600 were new build, 17,710 from change of use, and 4,630 demolished. All data from MHCLG National Statistics.
Last reviewed: June 2026 | Source: MHCLG Net Additional Dwellings 2024-25 | Next release: November 2026
What net additional dwellings measures
Net additional dwellings is MHCLG's primary and most comprehensive annual measure of housing supply in England. It counts the net change in the dwelling stock -- new homes added (from new build, change of use, conversions and other gains) minus homes lost (primarily through demolition). It is based on data submitted by all 296 local authorities and is calibrated to the Census 2021 dwelling count for consistency. It differs from house building starts and completions (which count only new build) and from Energy Performance Certificate (EPC) lodgements (which MHCLG uses as a leading indicator between annual releases).
The measure covers England only. Scotland, Wales and Northern Ireland publish separate housebuilding statistics through their devolved governments. For UK-wide figures, ONS compiles a composite housebuilding dataset though MHCLG's England series remains the primary policy benchmark.
The 2024-25 figure in detail
England's 208,600 net additional dwellings in 2024-25 consisted of 190,600 new build homes (91.4% of all additions), 17,710 gains from change of use between non-domestic and residential buildings, 3,850 from conversions between houses and flats, and 1,080 other gains including caravans and houseboats, offset by 4,630 demolitions. The 6% fall from 2023-24 marks the third consecutive annual decline and takes the total to the lowest level since the pandemic-affected 2020-21 year.
Regionally, net additions per 1,000 dwellings in 2024-25 ranged from 6.54 in the North East to 9.71 in the East Midlands. By local authority, the lowest rate was in Castle Point, Essex (0.54 per 1,000) while the highest was in Tewkesbury, Gloucestershire (31.23 per 1,000).
The government's 1.5 million home target
The Labour government's manifesto committed to delivering 1,500,000 new homes over the Parliament, requiring approximately 300,000 net additions per year. This is the highest annual target in modern UK housebuilding history. The peak was 248,590 in 2019-20, some 51,410 homes below the annual target. MHCLG estimates that approximately 275,600 net additional homes have been delivered since Parliament first met on 9 July 2024 to November 2025. The trajectory implies a significant shortfall unless delivery accelerates substantially through the remainder of the Parliament.
The government's planning reforms -- including the mandatory housing targets restored through the revised National Planning Policy Framework (NPPF), the new spatial development strategies for combined authorities, and the Planning and Infrastructure Bill -- are designed to unlock additional housing supply. However, planning system reform typically takes several years to translate into completed dwellings, meaning the short-term trajectory is constrained by sites already in the pipeline.
Affordable housing supply
Of all net additions in 2023-24 (the latest year with confirmed affordable housing data), 62,290 were affordable homes, representing 28% of all new additions. This is up from the trough of 16% in 2015-16 but well below the 40% peak in 2010-11 when social housebuilding was higher. The government's affordable homes programme through Homes England and the Greater London Authority has been expanded, with a new 39 billion pound commitment over 10 years to deliver around 300,000 social and affordable homes including 180,000 social rented homes.
Affordable housing is defined as housing for those whose needs are not met by the market, including social rented (at around 50% of market rents), affordable rented (up to 80% of market rents), shared ownership, and other intermediate tenures. Social rented housing -- the most affordable and most in demand -- makes up a declining share of new affordable supply as housing associations rely more on cross-subsidisation from market sale to fund development, which compresses the proportion of genuinely affordable units in mixed-tenure schemes.
Why housebuilding is falling short
The gap between the 2024-25 outturn of 208,600 and the 300,000 target reflects a combination of structural, financial and planning constraints. Planning system delays add time and cost to development; the average time from outline planning permission to first dwelling completion has lengthened significantly. Construction cost inflation over 2021-24 squeezed developer viability margins, reducing the number of sites that could be built out profitably at planning-compliant affordable housing levels. Higher interest rates in 2022-24 increased the cost of development finance and reduced demand-side appetite, particularly for higher-value developments. The shortage of skilled construction workers -- an ongoing constraint exacerbated by reduced EU labour mobility post-Brexit -- limits physical delivery capacity.
The drop in housing association development reflects financial pressures on that sector: the combination of higher borrowing costs, the requirement to invest heavily in existing stock improvements (particularly fire safety remediation and energy efficiency), and rent caps limiting income has constrained capacity for new development. Local authority housebuilding, which was the primary delivery mechanism for social rented housing in earlier decades, remains at a fraction of historic levels due to constraints on borrowing, planning capacity and revenue funding.
What this means for rents and house prices
Housing supply shortfalls directly sustain upward pressure on both rents and house prices. When new homes are not built at the rate needed to accommodate household formation and population growth, existing dwellings become scarcer in relative terms, pushing prices and rents higher. The ONS Price Index of Private Rents recorded average UK monthly rents at 1,383 pounds in May 2026, up 3.3% on the year. The ONS UK House Price Index recorded average UK house prices at 270,000 pounds in April 2026. Both measures reflect the persistent imbalance between housing supply and demand that a shortfall of over 91,000 homes per year relative to target compounds.
Part of: UK Data Trackers |
Disclaimer All figures from MHCLG National Statistics (Net Additional Dwellings, England 2024-25). Parliament target delivery estimates use MHCLG EPC-based methodology. Affordable housing data from 2023-24 release (latest available). Updated annually (next release: November 2026). Not financial or planning advice. |
How many new homes were built in England in 2024-25?
England added 208,600 net additional dwellings in 2024-25, including 190,600 new build homes. This was 6% lower than 2023-24 and the third consecutive annual fall. Source: MHCLG National Statistics.
What is the government's housebuilding target?
The Labour government's target is 1,500,000 new homes over this Parliament, requiring approximately 300,000 net additional dwellings per year in England. The 2024-25 outturn of 208,600 is 91,400 below this annual target.
When was the peak of UK housebuilding?
England's highest recent annual total was 248,590 net additional dwellings in 2019-20. Even this peak was below the current government target of 300,000 per year.
What proportion of new homes are affordable?
In 2023-24 (latest available), 62,290 affordable homes were delivered, representing 28% of all net additions. This is up from a 16% trough in 2015-16 but below the 40% peak in 2010-11.
Disclaimer: All figures sourced from MHCLG National Statistics, GOV.UK, or Parliament's House of Commons Library. This page is for information only and not financial, legal or housing advice. |
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