Annual housing supply in England has seen a 6% annual decrease to net additions to housing supply in 2024-25, taking them to the lowest level since 2015-16, according to data from the Ministry of Housing, Communities & Local Government (MHCLG).

Net additional dwellings in 2024-25 are 16% below their 2019-20 peak and are 60% above their 2012-13 trough.

Dr David Crosthwaite, chief economist at Building Cost Information Service (BCIS), said: “The latest figures underline the scale of the challenge facing the government.

“With net additions falling for the third consecutive year, delivery is moving further away from where it needs to be.

“On the current trajectory, we are looking at something closer to 1 million homes over the Parliament, rather than the 1.5 million that has been promised.

“The estimate that 124,800 net additions have been delivered so far this financial year would put England on course for roughly 204,000 homes in 2025/26 (seasonal differences excepted), which is further evidence that not enough is happening on the ground to change the direction of travel.

“This is a self-imposed target, and the emerging shortfall is becoming increasingly self-inflicted.

“The longer it takes for demand to stimulate housebuilding beyond current suppressed levels, the larger the delivery burden becomes later in the Parliament, and it is nigh on impossible to see how those numbers could realistically be achieved.”

The new dwellings created were 190,600 new build homes, 17,710 gains from change of use between non-domestic and residential, 3,850 from conversions between houses and flats and 1,080 other gains (caravans, house boats, etc), offset by 4,630 demolitions.