Secretary of state of levelling up, housing and communities Michael Gove said since the record high of 244,000 completions pre-pandemic there has since been “a number of economic headwinds which will make life more difficult” to reach the target of 300,000. 

Gove’s comments were made on 13 June at the Levelling Up, Housing and Communities Committee evidence session on the government’s levelling up plans announced last month in the Queen’s Speech. 

Speaking on the target, Gove said the target is still in place “but there are a number of factors that are going to make it and have made it more difficult”.

Gove highlighted the country’s “significant housing challenges” such as a historic lack of supply compared to the level of population growth. 

While Gove said the Treasury has confirmed the plans will be funded, he couldn’t confirm how the plans would be funded.

In his response, he revealed that funds would not come from his department’s existing budget but coming from “within the overall spending review envelope”. 

“We don’t know when in due course is able by definition, we better crack on because we can’t necessarily have the conversations with housing associations that we’d like without them having a greater degree of assurance. That’s entirely understandable on their part, but I’m not in a position yet to see exactly how will be funded,” Gove explained. 

The secretary of state said it’s “unlikely” that the government will consistently hit the 300,000-target year on year. 

“Fairplay to the private sector, they were the driving force behind the 244,000 plus target. But historically, when conservative governments have hit 300,000, it has been with the private sector and social housing together, contributing to hitting that target,” he commented.

According to data published by Unlatch last week, last year 181,810 new homes of the 300,000 target were completed across the UK, representing a shortfall of 118,190, which is the highest number since 2007.

Meanwhile, in light of the government’s commitment to abolishing Section 21 no-fault eviction notices, Gove said he is hopeful a whitepaper will be published later this week. 

Gove noted that the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities Eddie Hughes will reveal more on the renters and leasehold reforms later this week once the whitepaper has been published. 

Last week, UK Prime Minister Boris Johnson announced new measures to support more people to get onto the property ladder, including a comprehensive review of the mortgage market.

The Prime Minister set out the government’s commitment to reversing declining homeownership rates.

He also confirmed his ambition to “unlock the opportunity of home ownership” for more people through Right to Buy.

However, the new proposals were not welcomed by those within the industry with Shaw Financial Services founder Lewis Shaw describes the Prime Minister’s announcement as “the ultimate political meringue: sweet, lightweight and with very little substance”.

“Homeownership levels are lower now than they were in 2010, and we know that vast swathes of the right to buy houses have ended up in the hands of private landlords. We don’t need more right to buy schemes; we need to get more homes built and bring down the cost of buying and owning a home. Talk about fiddling while Rome burns,” Shaw comments.