Rightmove sounds alarm as new housing developments hit eight-year low: 'We need more homes!'

Fresh analysis raises questions over whether Labour can meet its target of building 1.5 million homes

Rightmove has revealed that the number of new housing developments coming to market has fallen to its lowest level in more than eight years.

The figures raise fresh questions over whether Labour can deliver on its pledge to build 1.5 million homes during this Parliament.

The property platform, which has tracked homes listed for sale for more than a decade, analysed entire housing developments rather than individual properties or plots.

Its data showed that May recorded the fewest new developments coming to market since January 2017.

Rightmove said the findings suggest the Government remains some way off meeting its housing ambitions despite introducing a series of planning reforms designed to reduce delays and accelerate housebuilding.

The figures come as the UK construction sector has experienced around 18 months of contraction.

Despite the slowdown in new developments, the wider housing market has continued to see a rise in available properties.

The total number of homes for sale, including both newly built and existing properties, is now 85 per cent higher than it was four years ago.

Rightmove said the increase in supply has not resolved the longer-term shortage of affordable homes.

Colleen Babcock, property expert at Rightmove, said: "Despite the historically high number of available homes for sale, there is still a long-term shortage of affordable homes in the right place."

Ms Babcock added: "We need more homes to support people at every stage of the moving journey, from first-time buyers to downsizers."

Under current Government policy, developers are required to allocate a proportion of homes within new developments as affordable housing to help more buyers access the property market.

Separate figures from the S&P Global UK Construction Purchasing Managers' Index showed activity contracted at its sharpest pace in May since the height of the coronavirus pandemic.

Construction firms cited delayed projects, reduced client budgets and reluctance to commit to major investment decisions as key reasons for the decline.

Barratt Redrow, Britain's largest housebuilder, has called on ministers to provide more targeted support for first-time buyers.

Steve Mariner, sales and marketing director at Barratt Redrow, said: "Government has made good progress reforming the planning system, helping unlock more land for development."

He added: "However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get on to the housing ladder."

Rightmove has also called for stamp duty to be abolished entirely for first-time buyers purchasing both newly built and existing homes.

The withdrawal of more generous stamp duty relief on higher-value properties last year has increased tax bills for some first-time buyers.

Under the current system, first-time buyers pay no stamp duty on properties worth up to £300,000, with partial relief available on purchases valued up to £500,000.

A spokeswoman for the Ministry of Housing, Communities and Local Government said: "We're building the homes this country needs and have always said that housing supply will ramp up in the later years of this Parliament as our major reforms begin to bear fruit."

She added: "We have already seen a 15 per cent increase in new housing starts compared to last year and our planning changes will help developers weather geopolitical pressures."