The Government remains off track to deliver its target of 1.5 million homes in England by the end of this Parliament, despite a rise in housing starts during the second quarter of 2026.
New figures from the Ministry of Housing, Communities and Local Government (MHCLG) show that an estimated 437,900 net additional homes were delivered between July 2024 and September 2026. This represents around 29% of the Government’s five-year target, despite almost 44% of the period having already elapsed.
There was some more positive news on construction activity, with 35,910 dwellings starting on site in Q2 2026. This was 5.5% higher than the previous quarter and 19.9% above the same period in 2025. Starts by private enterprise, which account for the majority of new housing, increased by almost a third year on year.
However, MHCLG has cautioned that the increase should be treated carefully, as part of the growth reflects a substantial rise in starts reported by the Building Safety Regulator.
Completions also rose by 1.5% year on year to 35,800, although this was a 3.4% fall compared with the previous quarter.
BCIS chief economist Dr David Crosthwaite said the industry still faces significant ground to make up, highlighting the need for greater clarity around support for housebuilding, construction and energy costs, first-time buyers and the impact of new developer levies.
For businesses working across the custom and self build sector, the figures underline the wider pressures facing housing delivery. With private enterprise continuing to provide the majority of new homes, certainty around costs, regulation and future Government support will remain important for those planning and delivering projects.
