Housing target hits wall as costs go through the roof

Builders warn thousands of homes will not be built amid soaring materials costs and worker shortages

The Government's target to build 300,000 homes a year by the mid-2020s has been plunged into doubt as soaring costs and labour shortages threaten thousands of projects.

Housebuilders have warned that many schemes are no longer viable, with the cost of materials such as steel, timber and concrete rising sharply in recent months, adding tens of thousands of pounds to the cost of each new home.

The industry is also facing a shortage of skilled workers, such as bricklayers and plasterers, which is pushing up wages and making it harder to complete projects on time and within budget.

Government accused of 'failure' over housing crisis

The National Federation of Builders (NFB) has accused the Government of failing to take the housing crisis seriously and has called for urgent action to help the industry.

NFB chief executive Richard Beresford said: "The Government's housing target is now in serious jeopardy. Soaring costs and labour shortages are making it impossible for many housebuilders to build new homes.

"The Government needs to take urgent action to help the industry, such as providing financial support for housebuilders and investing in training for new workers."

Industry warns of 'catastrophic' impact on housing supply

The Home Builders Federation (HBF) has also warned that the rising costs of materials and labour could have a "catastrophic" impact on the supply of new homes.

HBF executive chairman Stewart Baseley said: "The rising costs of materials and labour are putting a huge strain on the housebuilding industry.

"If the Government does not take action to help the industry, we could see a significant reduction in the number of new homes being built, which would make the housing crisis even worse."

Government defends record on housing

The Government has defended its record on housing, saying that it has taken a number of steps to help the industry, such as providing financial support for housebuilders and investing in training for new workers.

Housing Minister Stuart Andrew said: "We are committed to delivering more homes for people, and we are working closely with the housebuilding industry to overcome the challenges it faces.

"We have provided financial support for housebuilders and invested in training for new workers, and we will continue to take action to help the industry build more homes."