A third of councils are failing to tackle the housing crisis

The Government has released its housing delivery test results, which shows that a third of local authorities are failing to address the housing crisis.

The results show that 108 local authorities delivered fewer than 95% of the homes they need. This means that they must set out action plans to explain why they missed their targets and how they will address that.

In addition, 87 of these local authorities failed to deliver 85% of the homes they need and will therefore be subject to a buffer, which requires them to add 20% more homes to their five year land supply.

No area delivered fewer than 25% of their housing need, which means none will face the ‘presumption in favour of sustainable development’ penalty. However, the presumption penalty threshold will increase to 45% from November 2019 and to 65% in November 2020.

If the Government had not given areas three years to meet the 65% threshold, 32 local authorities would have been subject to the penalty.

The National Federation of Builders (NFB) recognises the challenges local planning authorities face in meeting the demand for housing, but remains concerned that so many councils are missing their targets, leaving us a shortfall of more than 220,000 new homes.

As local developers, NFB members would have preferred local authorities be in control of their own housing destiny but, since many are failing in their duty to meet housing demand and underestimating housing need, we welcome the blunt instrument that the Government is wielding.

Richard Beresford, chief executive of the NFB, said: “Since the carrot of meeting housing need themselves is not enticing enough for local planners, the Government’s stick of penalties and buffers is clearly required. We have a housing crisis and the Government is taking appropriate steps to fix it.

Rico Wojtulewicz, head of housing and planning policy at the House Builders Association (HBA), said: “Councils need to do a better job assessing housing need and identify where homes can be built more quickly. If they continue to underestimate demand and focus on large, controversial developments, we expect the housing crisis to worsen and the Government to take control from failing councils.

National Federation of Builders

The National Federation of Builders is a United Kingdom trade association representing the interests of small and medium-sized building contractors in England and Wales.

You May Also Enjoy

Breaking News

Forget kerb appeal: LRG report reveals what really triggers a homebuyer’s offer

One of the UK’s largest property services groups has published its debut sales report, uncovering what genuinely persuades buyers to make an offer – and the findings challenge the traditional focus on kerb appeal. While sellers often guess which improvements will pay off, the data shows where money is well spent and where it’s wasted.…
Read More
Breaking News

Prime London’s love affair with period homes continues

One in four listings are historic properties The latest research from Jefferies London shows that nearly a quarter of homes listed for sale across prime central London (23.3%) offer high-end homebuyers the chance to secure a period property, with demand for prime period properties at its highest in Maida Vale. Jefferies London analysed current for…
Read More
Breaking News

Industry Response to latest Nationwide House Price Index

Nationwide House Price Index for October 2025, with the latest figures showing no Halloween haunting for homebuyers where house price growth is concerned – despite widespread talks of Autumn Budget uncertainty hitting the market. The latest index shows that: – House prices increased by 0.3% between September and October of this year. On an annual…
Read More
Breaking News

The capital’s most haunted property hotspots for Halloween homebuyers

The latest analysis by Foxtons has revealed which of the capital’s spookiest postcodes command the largest house price premiums, as the average cost of purchasing a property in one of London’s most haunted neighbourhoods comes in 48% more than the wider London average. Foxtons analysed the property market across 14 of London’s most haunted locations,…
Read More
Breaking News

Annual house price growth edges higher in October

Slight increase in annual house price growth to 2.4% House prices were up 0.3% month on month Kitchen and bathroom renovations most popular amongst homeowners in last five years Analysis based on Nationwide’s HPI data shows extensions or loft conversions with a bedroom can increase house value by up to 24% Headlines Oct-25 Sep-25 Monthly…
Read More
Breaking News

How much will a Halloween Castle set you back

The latest research from Enness Global has revealed that, for those looking to follow in the footsteps of Count Dracula this Halloween, the average castle on the UK market will set buyers back around £2.2 million, requiring a deposit of £332,609 and a monthly mortgage repayment of more than £10,000. Enness Global analysed current castle…
Read More