England’s escalating housing crisis shows no sign of abating anytime soon, as Homes England is once again short of meeting any of its housing delivery targets. The figures in the agency’s 2021/22 annual report and financial statements make for a disappointing reading, with just 26,953 out of a planned 34,349 affordable homes having been successfully built.
In total, Homes England fell 15% short of its aim to build 44,275 new homes this year, having successfully constructed 37,632.
Pointing the finger of blame squarely at labour shortages and material procurement issues, Homes England said unexpected discrepancies had increased home delivery times by around 20 weeks on average.
“Capacity issues in the planning system, nutrient neutrality challenges, and material and labour shortages with increased associated costs have caused delays to housing provisions, impacting the agency’s delivery against its KPIs,” commented Peter Denton, CEO at Homes England.
The agency also failed to meet its unlocked housing capacity target, unlocking 58,993 homes through infrastructure and land, 38% fewer than its goal of 94,863.
Homes England also said that the shortfall was attributed in part to several key infrastructure programmes reaching the end of the funding deployment phase and moving to portfolio management.
“Our affordable homes programmes are a core contributor to our completions, and over the past year, partners have reported challenges in delivering completions,” read an extract of the report from Homes England.
“This has mainly been due to delays and access to labour supplies and materials. Schemes approaching completion were more directly impacted by labour and material shortages because it is at this stage where the need for resources is greatest.”
“Delays added c. 20 weeks to delivery times, reducing capacity to complete homes in the original timeframes.”
A brighter outlook ahead?
A brief summary of the targets set out by Homes England and the agency’s actual performance can be seen in the table below:
|
KPI |
2021/22 actual |
2021/22 Target |
Difference |
% away from hitting the target |
|
Completions directly supported by Homes England |
37,632 |
44,275 |
6,643 |
15.00 |
|
Completions directly supported by Homes England (additional to the market) |
25,279 |
30,922 |
5,643 |
18.25 |
|
Affordable, completed homes supported by Homes England |
26,953 |
34,349 |
7,396 |
21.53 |
|
Starts supported |
38,562 |
48,810 |
10,248 |
21.00 |
|
Unlocked housing capacity |
58,993 |
94,863 |
35,870 |
37.81 |
Source: Homes England annual report and financial statements
Despite the disappointing performance for 2021/22, Peter Denton reaffirmed the agency’s commitment to further expansion and enhanced regeneration going forward.
“This means we will not only deliver the homes this country needs, but we will also work with partners to revitalise run-down and derelict sites in order to bring confidence, pleasure, and pride back to our town centres,” he said.
“With a renewed focus on regeneration, a more place-based way of working will be central, bringing together all our tools and capabilities to support local leaders to deliver their vision for their towns, cities, and rural communities.”
“While boosting housing supply across England remains an important focus for the agency, our role is increasingly about more than making homes happen—it is about creating sustainable, thriving places that foster a sense of community and pride and can better connect people to employment opportunities and provide the amenities they need.”