Government forecast to miss target for housebuilding

June 28, 2026 by Brendan O'Neill

House building

Property firm Savills is predicting that the government will fall a long way short of its house-building targets between now and 2031.

The government announced plans for the construction of 300,000 homes per year during this period. Now, the estate agent has released a forecast that says it will get nowhere near its target. Savills expects 167,500 homes to be constructed each year, which would leave the government almost 50% short of its annual target. It is a prediction that will concern those within the mortgage industry – but many of them will not be surprised.

It would be an annual figure that is more or less the same as that of the past two decades. Nonetheless, it will be disappointing for those who were hoping supply could be increased to meet buyer demand.

The overall number of homes Savills expects to be built in the upcoming five years is 837,000. It is predicting that this year and next will be the stickiest period for building. This is due to a combination of planning consents being low and demand being impacted by cost-of-living pressures.

Emily William is the residential research director at Savills. Speaking to Mortgage Finance Gazette, she said:

“England’s housing delivery has proven to be reasonably resilient in the face of recent economic headwinds, but the underlying picture is becoming increasingly challenging.”

She added that building levels should begin to pick up after 2027.

These forecasts indicate those who have the CeMAP mortgage advisor qualification will remain vital to buyers trying to navigate a sellers’ market.