Government unlikely to meet 1.5m homes target, housing secretary says

The housing secretary warned on Thursday that soaring construction costs and the ongoing conflict in Iran are jeopardising the government’s flagship manifesto commitment to deliver an additional 300,000 homes by 2027. The minister cited rising prices for steel, timber and cement—driven by supply‑chain disruptions linked to the war—as the primary factors inflating building budgets, while also noting that the geopolitical tension has heightened energy prices and reduced the availability of skilled labour on construction sites.

In response, the department is reviewing its funding formula and exploring temporary extensions to planning permissions to mitigate delays. Officials said they will work with local authorities and industry bodies to identify cost‑saving measures, but acknowledged that without a rapid stabilization of material prices the original housing target may need to be revised. The secretary emphasized that meeting the pledge remains a priority, but that external economic pressures could force a recalibration of the delivery timetable.