Fresh blow for Reeves as house builders warn Labour will struggle to hit 1.5m homes target
Labour ‘will struggle to hit new homes target’ in fresh blow for party
- House builders have warned the government is set to miss its target of building 1.5 million homes by the end of the decade, delivering a blow to Rachel Reeves ahead of the November Budget.
- The Home Builders Federation (HBF) informed the Office for Budget Responsibility (OBR) that its forecasts for economic growth from construction are overly optimistic.
- HBF Chief Executive Neil Jefferson stated that the OBR's housing supply numbers are only achievable with increased support for first-time buyers and reduced taxes on new homes.
- This warning is likely to harm prospects for the OBR upgrading its forecast for economic growth from construction, potentially leading to a downgrade.
- Labour MP Chris Curtis expressed concern that the party is at risk of missing its housing targets due to slow reform, while Chancellor Rachel Reeves acknowledged tough economic forecasts but vowed to defy them.