The first Annual Review of the campaign 1.5M New Homes: The Local Government Challenge reveals the top 10 obstacles councils face in delivering new homes – and the solutions they are pioneering on the ground.
This has been produced jointly by The Housing Forum and the 1.5m Home Campaign.
Drawing on interviews with councillors, officers and residents from across 10 local authorities in London and other high-pressured areas, the Annual Review highlights that:
- Viability and funding pressures are the biggest barriers, with construction costs up 30–40% in five years and grant rates failing to keep pace.
- Regulation and capacity issues – from building safety approvals to shortages of planners – are stalling projects for months or years.
- Market instability and reduced investment confidence are leaving some schemes unviable and others half-built.
- Despite the challenges, councils remain determined to build new homes, with examples of bold political leadership, partnership working, and community engagement pointing the way forward.
Co-authored by Toby Fox, founder of the campaign, and Anna Clarke of The Housing Forum, the Review is launched today (2 October) at Housing Today’s “Building the Future” conference.
Stephen Teagle, Chair of The Housing Forum said: “The Housing Forum works closely with the whole of the housing sector and supply chain. This includes our councils across the country, who we know are keen to build more homes, but face enormous challenges in doing so. We hope that this report will help identify not just the barriers, but also the opportunities and solutions that are available, to help councils fulfil their role as builders and facilitators of much-needed new homes.”
Toby Fox, Founder of 1.5M New Homes: The Local Government Challenge, added: “Our video interviews on housing sites with a different council each month highlight both the scale of the challenge and the ingenuity already being shown locally. Councils are finding ways to unlock stalled sites, build political will, and engage their communities. This Review analyses those interviews to create a data set enabling government and partners to see how best they can support councils to deliver our shared national ambition of 1.5 million new homes.”
Top 10 challenges identified by councils, according to the impact resolving them would have on accelerating housing delivery:
- Viability
- Funding
- Building safety regulation
- Market stability and investment confidence
- Land availability and assembly
- Density and infrastructure delivery
- Construction industry capacity
- Engagement and trust
- Gaining planning consent and using Local Plans to support housebuilding
- Council capacity
Solutions identified include: long-term funding settlements, support for higher density and brownfield regeneration, investment in skills, modern methods of construction, stronger partnerships with developers and housing associations, and early engagement with communities.
