What the industry thinks of Labour's new housing plans

A new government means a new target for building homes - but developers have heard it all before, says Chris Blackhurst

- Chris Blackhurst

Negotiating the London traffic on Wednesday night was a particular nightmare. The King's Speech, European leaders flying in for their summit, tourists everywhere, and balmy weather bringing people onto pavements all contributed to the impression of a city that is overcrowded, at times barely functioning.

At a dinner of business leaders off Piccadilly, conversation soon focused on the new government and its plans. We'd heard the King outline 40 bills, promising "a decade of national renewal".

There was no ill will towards Labour. Guests were nervous about the likelihood of tax increases, but generally the consensus was that Britain had stability after years of turmoil, and that relations with the EU (the B-word, along with the problems it's caused, is mentioned time and again at business gatherings, but was barely raised during the election campaign) could only improve.

Then, the housebuilder pushed back his chair. He was well known, an industry leader, hugely successful and a veteran of many governments. We'd asked for his thoughts on one of the most eye-catching measures of all: the pledge to build 1.5 million new homes during this parliament.

There was a wry grin. We were all hooked on the 1.5 million as revolutionary and exciting. It's not. Memories are short. This parliament will last five years, so that's 300,000 new homes a year. The Boris Johnson administration had the same target, though it was scrapped by Liz Truss as too "Stalinist". Indeed, the ambition of 300,000 new homes a year has been bandied around Whitehall for years.

Even so, would it be met? No. There would have to be radical change across several areas before there was any likelihood of that figure coming within touching distance.