New research suggests the government’s pledge to build 1.5 million homes over the course of this Parliament may still fall short of what is needed to meet demand.

Anna Clarke, director of policy and public affairs at The Housing Forum, argues that while the target is ambitious, the scale of the challenge is far greater. Long-term underdelivery has left the UK with one of the most acute housing shortages in Europe, fuelling affordability pressures across both the rental and sales markets.

Key issues raised include:

• Backlog of demand: Decades of underbuilding mean that even 1.5 million homes may not be enough to stabilise prices or rents.

• Land and planning constraints: Local resistance, slow approvals, and infrastructure gaps continue to delay new schemes.

• Labour and materials shortages: Post-Brexit workforce gaps and higher construction costs threaten delivery capacity.

• Policy uncertainty: Shifting planning rules and housing targets make long-term investment difficult for developers and institutional landlords.

What this means for landlords and investors

• Persistent demand: Even if the 1.5m target is met, rental demand will remain strong, particularly in high-pressure cities and university towns.

• Opportunity in supply gaps: Where local authorities fail to meet housing targets, landlords may see rising rents and fewer voids — but also increased regulation as councils seek to control affordability.

• PBSA & BTR growth: Purpose-built student accommodation and build-to-rent are likely to attract more institutional funding, but smaller landlords can still play a role where supply gaps persist.

• Uncertainty is risk: Delivery shortfalls mean policymakers may look again at the private rented sector (PRS) to pick up the slack, with further regulation or tax reform possible.