Angela Rayner has hit back at critics of Labour’s ambitious plan to build 1.5 million homes, warning them to “underestimate me at your peril”.
The deputy prime minister has come under increasing pressure over the flagship target after property agent Savills forecast that there would be only 840,000 new homes – just over half.
Ms Rayner, who is the cabinet minister in charge of the policy, said she had been underestimated “all my life” as she announced the launch of a new government-backed project to support builders.
She says the National Housing Bank will unlock new housing schemes across the UK, thanks to low-interest loans provided to developers hampered by rising inflation and higher interest and mortgage costs.
The move, backed by £22bn in government finance, will see more than 500,000 new homes built, including many social and affordable properties, says Ms Rayner.
It comes after warnings to the local government secretary that Labour’s election pledge for 1.5 million homes over this parliament is unachievable. In its forecast on housebuilding published earlier this month, Savills said 840,000 new homes will be completed over the next five years, with the property firm blaming a low demand from buyers.
Government figures for 2024 also show a 28 per cent fall in new-build starts in England compared to 2023.
However, writing exclusively for The Independent, Ms Rayner tells critics to “underestimate me at your peril” as she announced the housing bank scheme, which she claims would finally give access to housing for many hard-working families.
Ms Rayner leans on her own experience of living in a council house, saying it provided her with stability, but that for too many people, this remained out of reach. And she blames the Tories for the “broken system”.
In her piece, Ms Rayner says: “Underestimate me at your peril. People have done this all my life. But this government has a bold vision to fix the housing crisis and a strategy to deliver both investment and reform.
“We’re overhauling the planning system to speed up approvals and unlock land – a clear statement of intent. And today we are taking another major step to fix a broken system that has held back too many hard-working families – and the country – for far too long.”
Building more homes has been at the centre of Labour’s plan since coming to power. Earlier this year, Ms Rayner vowed to build 10 to 12 new towns from 100 potential sites, with the chosen locations set to be unveiled this summer.
Also, Labour has pledged to strip demands on developers to mitigate the environmental impact of new buildings before they are constructed, although the reforms have faced fierce criticism from wildlife groups.
And at chancellor Rachel Reeves’s spending review announcement, she pledged £39bn would be spent on affordable and social housing over the next decade.
The National Housing Bank, unveiled on Tuesday, will further push the development of new homes, said Ms Rayner.
The public financial institution will work with mayors and local leaders to back projects meeting regional priorities, and it will support, in particular, small and medium-sized firms that have struggled most in securing capital.
In total, Ms Rayner says the initiative would open up £53m of private investment into building homes.
She writes: “Our commitment to build 1.5 million homes as part of our Plan for Change is a stretching target, but not one I will shy away from. To those with doubts, I repeat: underestimate me at your peril.
“Yes – the road ahead is tough. But we are committed, as this is about more than just numbers.
“It’s about giving fresh hope for millions of people across Britain and creating communities where families can thrive and children grow up in safety. It’s about making sure a generation is no longer locked out of homeownership – and ensuring children aren’t growing up in temporary accommodation.”
Shadow housing secretary Kevin Hollinrake MP said: “While the ambition to increase housing supply is welcome, history teaches us that governments are often poor at picking winners and Homes England has very mixed results.
“The new National Housing Bank must be laser-focused: it must not crowd out private capital, must not subsidise developments that would have proceeded anyway, and must not be lured into funding pie-in-the-sky or unviable projects – instead its role should be limited to de-risking only those schemes that are genuinely unable to attract finance, to ensure taxpayer money is not wasted and private investment is not crowded out.”
Ms Rayner came under the spotlight for the sale of her own ex-council house last year.
The secretary of state for housing, communities and local government was told she would face no police action after an investigation into whether she owed tax from the sale of the home, on which she made a £48,500 profit.
