Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Savills Warns Government Will Miss Housebuilding Target by Over 660,000 Homes

Savills has warned that the government’s target of building 1.5 million new homes in England by 2029/30 will be missed by more than 660,000 homes. The agency forecasts that new homes completions will average 167,500 per year over the next few years, well below the government’s annual target of 300,000.

According to Savills, a total of 837,500 new homes are expected to be built in England in the five years to 2029/30. The latest figures show that new homes completions fell by 4.1% to 190,602 in the year to March 2025. This marks a 10.2% drop in completions over the two years since the Help to Buy scheme ended.

Savills expects the number of new homes built to fall sharply in the next two years, with just over 150,000 completions forecast for both 2026/27 and 2027/28. The agency highlights that low levels of planning consents and starts are leading to a thinner pipeline of homes under construction. Affordability pressures, higher interest rates, and rising development costs are also cited as factors constraining demand and viability in the sector.

Savills notes that a first-time buyer support scheme could materially improve delivery. Under such a scenario, completions could rise to 198,000 homes per year by 2028/29. While this would still be below the government’s target, it would be enough to maintain housebuilding at the average rate seen over the last decade despite current challenges.

The government has recently started a consultation on a new first-time buyer ISA to replace the Lifetime ISA.

For letting agents and inventory clerks, these forecasts suggest ongoing pressure on housing supply, which may impact rental demand and property availability in the coming years.