21 September 2026
The Times: Two ways to kick-start the new-build housing market
Jennie Daly: A regulation revamp and more support for first-time buyers are desperately needed as the government's targets look increasingly unrealistic.
Housebuilding is essential to a thriving economy and to people’s quality of life. The sector supports employment, drives GDP growth and provides relief for public finances, as well as the social benefits that come from a stable home. But the conditions facing the industry put new home delivery at risk.
The housing sector is carrying the weight of challenging macroeconomic conditions and the growing regulatory burden that directly affects viability. Viability is really the difference between delivering new homes across the country or not. Unlocking the market and making it possible to build where homes are desperately needed is a national priority.
The industry has long called out the growing burden of regulation, the red tape and worthy policies that, when viewed in isolation, seem reasonable but in practice add up and create an impossibly challenging environment for housebuilders. Home Builders Federation (HBF) research shows that regulation, tax and inflation have added £76,000 to the cost of a new home since 2020, rising to £96,000 in London. This is equivalent to 20 per cent of the average new-build price of £365,000. Over the same period, house prices have increased by 12 per cent, while the cost to build has risen by 25 per cent. This is a structural problem that falls exclusively on the new-build sector, the part that adds to the country’s housing stock; it doesn’t burden the secondary market.
Delivering the government’s ambition of 1.5 million new homes during this parliament, and 300,000 social and affordable homes by 2036, is becoming unlikely; the underlying economics are deteriorating faster than policy is responding. The lack of buyer demand is holding back housebuilding across the country, particularly for first-time buyers. Savills’s latest research forecasts new home completions in England will fall to just 152,000 in 2026/27, roughly half the government’s target and the lowest figure since 2015. Its research finds that constrained affordability and the end of Help to Buy have caused demand to fall to levels comparable to the financial crisis in some regions.
These regulatory costs now directly affect the feasibility of new sites, particularly in the areas where build costs relative to sales prices are already stretched, often the very areas most in need of new homes. Without meaningful intervention, costs will continue to increase and output will fall.
HBF’s State of Play research found that nine in ten SME housebuilders said the regulatory burden and tax environment are affecting the financial viability of their projects; 68% said they are significantly affecting their business. We continue to see the burden grow, mandating features that cannot be descoped, causing build costs to rise faster than house prices. The government needs to review the cumulative impact and cost of regulation, to simplify requirements where possible and ensure regulation doesn’t undermine the ambition to build more homes.
Owning a home was once seen as a rite of passage; it is now becoming a privilege. According to Connells, almost one in three first-time buyers had already started a family before getting onto the property ladder, leaving many young families in a more precarious financial position. This is not simply a demographic shift; it is the consequence of constrained affordability. When fewer first-time buyers can enter the market, fewer existing homeowners can move up the ladder, and more households remain in the rental sector for longer. This drives up demand and rents in an already supply-constrained market, making it harder for younger people to save for a deposit.
The housebuilding sector supports up to 834,000 jobs across England and Wales, through the supply chain and the wider economy. The sector’s regional businesses and local employment are central to the economic growth that devolution is designed to unlock. It is one of the most accessible industries in the country and a key employment entry point for many young workers, whether you have a degree or start as an apprentice. As a sector, we are well placed to support the government’s priority of reducing the number of young people not in education, employment or training. However, investment in training requires confidence in the market, and weak demand is making it harder.
Two things that would make the biggest difference to the sector: a review of the cumulative regulatory burden and the reintroduction of Help to Buy, or an equivalent demand-side stimulus. First-time buyers need support to get on to the ladder. Help to Buy would be the fastest route to restoring demand and getting the market moving.
Jennie Daly is the chief executive of Taylor Wimpey.
Link to the The Times article can be found here.
The housing sector is carrying the weight of challenging macroeconomic conditions and the growing regulatory burden that directly affects viability. Viability is really the difference between delivering new homes across the country or not. Unlocking the market and making it possible to build where homes are desperately needed is a national priority.
The industry has long called out the growing burden of regulation, the red tape and worthy policies that, when viewed in isolation, seem reasonable but in practice add up and create an impossibly challenging environment for housebuilders. Home Builders Federation (HBF) research shows that regulation, tax and inflation have added £76,000 to the cost of a new home since 2020, rising to £96,000 in London. This is equivalent to 20 per cent of the average new-build price of £365,000. Over the same period, house prices have increased by 12 per cent, while the cost to build has risen by 25 per cent. This is a structural problem that falls exclusively on the new-build sector, the part that adds to the country’s housing stock; it doesn’t burden the secondary market.
Delivering the government’s ambition of 1.5 million new homes during this parliament, and 300,000 social and affordable homes by 2036, is becoming unlikely; the underlying economics are deteriorating faster than policy is responding. The lack of buyer demand is holding back housebuilding across the country, particularly for first-time buyers. Savills’s latest research forecasts new home completions in England will fall to just 152,000 in 2026/27, roughly half the government’s target and the lowest figure since 2015. Its research finds that constrained affordability and the end of Help to Buy have caused demand to fall to levels comparable to the financial crisis in some regions.
These regulatory costs now directly affect the feasibility of new sites, particularly in the areas where build costs relative to sales prices are already stretched, often the very areas most in need of new homes. Without meaningful intervention, costs will continue to increase and output will fall.
HBF’s State of Play research found that nine in ten SME housebuilders said the regulatory burden and tax environment are affecting the financial viability of their projects; 68% said they are significantly affecting their business. We continue to see the burden grow, mandating features that cannot be descoped, causing build costs to rise faster than house prices. The government needs to review the cumulative impact and cost of regulation, to simplify requirements where possible and ensure regulation doesn’t undermine the ambition to build more homes.
Owning a home was once seen as a rite of passage; it is now becoming a privilege. According to Connells, almost one in three first-time buyers had already started a family before getting onto the property ladder, leaving many young families in a more precarious financial position. This is not simply a demographic shift; it is the consequence of constrained affordability. When fewer first-time buyers can enter the market, fewer existing homeowners can move up the ladder, and more households remain in the rental sector for longer. This drives up demand and rents in an already supply-constrained market, making it harder for younger people to save for a deposit.
The housebuilding sector supports up to 834,000 jobs across England and Wales, through the supply chain and the wider economy. The sector’s regional businesses and local employment are central to the economic growth that devolution is designed to unlock. It is one of the most accessible industries in the country and a key employment entry point for many young workers, whether you have a degree or start as an apprentice. As a sector, we are well placed to support the government’s priority of reducing the number of young people not in education, employment or training. However, investment in training requires confidence in the market, and weak demand is making it harder.
Two things that would make the biggest difference to the sector: a review of the cumulative regulatory burden and the reintroduction of Help to Buy, or an equivalent demand-side stimulus. First-time buyers need support to get on to the ladder. Help to Buy would be the fastest route to restoring demand and getting the market moving.
Jennie Daly is the chief executive of Taylor Wimpey.
Link to the The Times article can be found here.