Labour’s pledge to build 1.5 million new homes by 2029 and deliver the “biggest growth in social and affordable housebuilding in a generation” has been plunged into doubt by the official who has been leading the plan.
In an email to his staff seen by i, Peter Denton, chief executive of the Government’s Homes England agency, which is responsible for boosting housing supply; describes them as “amazing and incredible ambitions”.
He adds that “realistically”, this is a “two parliamentary term approach”. That would stretch the end date to 2034 – twice the length of time ministers set for their flagship new housing target.
Homes England has told i it will not comment on a “personal” email that was not intended to be shared externally, and the Ministry of Housing, Communities and Local Government has said that it remains committed to delivering the new 1.5 million homes in five years.
But the developers who will have to build the homes are also warning that the goal is, in reality, likely to take a decade to achieve.
‘No chance’ of 1.5m new homes in five years
Rico Wojtulewicz, head of housing and planning policy at the National Federation of Builders, which represents small and medium-sized housebuilders, told i: “There is no chance that the Government’s plan for 1.5 million homes will be delivered in five years.
“It really could take two terms because they continue to put all their eggs in one basket and rely on the big house builders and big developments which can take 10 years to complete.
“On the outside it will take at least one-and-a-half parliamentary terms and only if they put all right policies in place. But they’ve not been quick enough off the mark.”
The Home Builders Federation, which represents many of the country’s biggest house building firms has expressed similar doubts over the target.
“The swift moves to address constraints in the planning system are very welcome but to achieve its ambitious target of 1.5 million homes in the next five years Government will need to pull more policy levers,” the federation’s chief executive Neil Jefferson told i.
It would take a whole Parliamentary term just to finish the first house on a major 1,000-home development once a planning application was accepted as valid by a local authority, he added.
‘Anger’ among Homes England staff at ‘lack of focus’
The news comes against a backdrop of huge uncertainty for the Government’s new homes programme. On Friday it announced that Denton would be leaving Homes England – which ministers have described as being “vital” to their housing agenda – along with the agency’s chair Peter Freeman.
Meanwhile, i has been told of further “anger” among Homes England staff “pissed off” at the way they think the agency has been “throwing away” money on consultants.
They have also told of new frustrations about its “lack of focus”, “dysfunctional” working, and a “top-down management culture” that “treats people badly”.
But the agency says it does not recognise “this anonymous commentary on our leadership and culture, and it does not align with the feedback we receive from colleagues and partners”.
An interim chief executive has been appointed who will start at the agency in January. In his e-mail to Homes England staff on Friday, Denton said the agency had done “rather well despite the economic and political volatility and the scale of ambition versus resources”.
“But the new Government has amazing and incredible ambitions of its own,” he wrote. “Who could not be excited by 1.5m homes, meaningful local growth plans and the largest delivery of new social housing in a generation?”
“This places Homes England at the epicentre of everything – a journey where the agency’s role becomes even more critical to ministerial ambition. That realistically is a two-parliamentary term approach and stretches well beyond any timeline I personally envisaged for myself.”
Ministry says housing programme is on track
After i approached Denton for comment about his email, it was suggested that he was referring to the social housing pledge rather than the 1.5 million new homes goal when he discussed the timescale.
But when this was put to the Housing Ministry, i was told that the growth in social and affordable housing promise, made by Deputy PM Angela Rayner, was part of the 1.5 million homes target and was also due to be delivered by 2029, within the five-year Parliamentary term.
“We have already taken steps in July and in the Budget, giving councils more flexibility with right to buy receipt and £500m for the affordable housing programme,” a spokesperson added. “These are the first of a series of interventions which will be announced in the coming weeks and months.”
‘Homes England is broken’
The National Federation of Builders says Homes England is “absolutely key to fixing many of the problems with the housing market” but is currently “broken”.
“You need a body to push the house building industry forward and Homes England is perfectly placed to do that but it has been broken by its high turnover of staff and has not been doing that job,” the federation’s head of housing and planning policy Rico Wojtulewicz told i. “They need certainty because house building projects take time but Home England is constantly chopping and changing its approach. They haven’t appeared to have any long-term vision.”
i analysis found that half of the 10 executives and key managers named in Homes England’s annual report in 2022/23 have since left the organisation. “The executive leadership has suffered from regular resignations and some unexplained and very immediate departures,” one staff member told the i.
One executive was paid a day rate equivalent to a £415,000 salary throughout last 2023 – more than twice the rate they were paid when they started the job permanently in January, according to Government data seen by i and confirmed by DLHUC.
Two recent departures were due to ill health and retirement.
Denton’s candid email admits he had been “pretty clueless in many respects” when he joined the agency in 2021.
“I simply had no idea of the scale, reach, and complexity of the agency,” it reads. “I also had minimal political or government exposure and crucially, little appreciation of the actual position of the agency internally or with its stakeholders… it’s been a learning curve.”
Freeman’s departure from Homes England next year as chair was expected, but Denton had been expected to stay at the agency until 2026.
Nearly £400k spent on internal staff meeting
In March an i investigation into the quango revealed concerns about a “dysfunctional”, “sick” organisation that had kept councils waiting for years and frustrated builders who ended up walking away.
Former senior insiders spoke of how the organisation that the then Housing Secretary, Michael Gove, was relying on to “supercharge” urban regeneration had become a consultants’ “gravy train”, dogged by secrecy and a “horrifying lack of focus” verging on the “immoral”.
And in April i reported on discontent among Homes England staff who felt the agency was neglecting delivery and warned of a “failure” to manage spending, including nearly £400k on an internal meeting. They feared that a “severe budget position” might mean job losses and claim that many would want to leave.
Their comments came after Denton told his staff that “serious” spending on consultants would continue and that the agency was at risk of “a finance system that is literally about to fall over” and could leave Homes England “in proper trouble”.
Last night a Homes England spokesperson said: “Homes England does not recognise this anonymous commentary on our leadership and culture, and it does not align with the feedback we receive from colleagues and partners. We’re immensely proud of the positive difference our colleagues make to communities across England every single day.
“As an arm’s length body, the Agency is subject to rigorous scrutiny to ensure it is fit for purpose – most recently in an independent public bodies review, published in May 2024, which concluded that it is an efficient and effective organisation that provides value for money.”
A Ministry of Housing, Communities and Local Government spokesperson said: “Homes England‘s vital role in boosting growth and helping us deliver the homes we need will continue under new leadership. The Housing Minister recently set out seven immediate priorities for the agency to focus on and we will continue to measure their work against these objectives.”
