Angela Rayner has admitted that Labour’s pledge to build 1.5m new homes in five years is a “really difficult stretch target”.

The party made the pledge in its 2024 general election manifesto, but only 295,150 houses have been completed in the first two years of the current parliament.

On Friday, Ms Rayner – who was reappointed as Housing Secretary by Andy Burnham this week – said the goal of building 1.5m new homes would be “a real challenge” to meet by the next election.

She told the BBC’s Today programme: “That commitment was very challenging before, when I came into government.

“It’s certainly got more challenging, and we’ve seen things like construction costs go up, which has had a real negative impact on that. I’m not dropping it – I’m just saying it’s a really difficult stretch target.”

The Government’s target was dealt a further blow last year as planning approvals for new homes dropped to their lowest in a decade, with Britain entering its steepest slump in housebuilding since the 2008 financial crisis.

Just 143,110 homes were completed last year, down from 152,040 the previous year. The Government would need to complete 300,000 homes a year to reach its target, but it has not managed to hit the targets in the first two years of this parliament.

Told that she was “miles and miles off” meeting Labour’s manifesto pledge, Ms Rayner said: “This isn’t an excuse, but it’s true – houses don’t go up in, like, five minutes. I wish they did, but they don’t. It takes time.”

The Housing Secretary insisted she had used her first stint in the position to secure £39bn in funding from the Treasury and change the national planning policy framework.

Ms Rayner was previously in the job from July 2024 to September last year, when she was forced to resign following a Telegraph investigation into her tax affairs.

Going on to blame the war in Iran and the previous Tory government, Ms Rayner said: “You get a lag from before because the previous government had completely wrecked the housing market.

“And in the middle of that, we’ve also had construction costs that have gone up, we’ve got the war in Iran and the challenges with the Strait of Hormuz. They also have an impact on the housing market.”

Ms Rayner was challenged on whether she would keep the 1.5m target, and replied: “I’m going to keep the target, but it’s like me saying I’m going to run the London Marathon in just under five hours. That would be a real challenge for me, but I’d do it … 1.5m homes is a difficult target, it was when I made the target.”

Ms Rayner made the remarks on Friday, hours before Mr Burnham visited the new No 10 North headquarters in Manchester for the first time.

He plans to work in Heron House, in the centre of the city, each week. Other ministers, including Ms Rayner, will work there on a regular basis to make it the “situation room for growth”.

Mr Burnham addressed staff at the headquarters on Friday morning, describing his first day as “the best day of my life”.

Later on, he will lead a meeting of the revived National Economic Council and meet regional city mayors.

The new No 10 North office forms a major part of Mr Burnham’s pledge to devolve power from Whitehall. It will be run by Louise Haigh, his close political ally and the First Secretary of State, who is to head a newly created Office for the Prime Minister and the Cabinet.

Mr Burnham has selected the most northern Cabinet since the Second World War, with 13 of the 23 ministers in his top team representing seats in the north of England.

Ms Rayner also suggested that she was in favour of the implementation of a tourism levy for overnight stays in cities as part of plans for further devolution.

Hinting at further devolved tax-raising powers, which could include income tax, she said: “We need to look at that model and allow areas to look at business rates.”

Mr Burnham has started his premiership with a series of policy announcements intended to ease the cost of living. Hours after entering Downing Street on Monday, the Prime Minister said he was considering rent freezes.

However, in an interview with BBC Breakfast, Ms Rayner said: “We won’t be looking at rent controls, if that’s what you’re getting at, at the moment.

“That is not something that we’re looking to do because we’ve seen what’s happened in areas like Scotland – it hasn’t necessarily brought rent down.”

Mr Burnham has pledged to roll out the biggest council housing programme since the post-war period, but the Housing Secretary floundered when asked to provide an exact figure.

“There’s lots of moving parts when it comes to housebuilding, and anyone who’s tried to do renovations at home will tell you it can be delayed or other things can go smoother than you think,” she said.

“So when you’re doing a national housebuilding programme, things can move around. So I can’t give you an exact figure, but it will increase.”

Labour has enjoyed a boost in the opinion polls since Mr Burnham succeeded Sir Keir Starmer, narrowing the gap to Reform UK.

Ms Rayner became one of Sir Keir’s most outspoken critics after her return to the back benches, warning in March that “time was running out” for her party.

Asked whether she still believed that was the case, she replied: “We’re on borrowed time if we don’t get a move on, and I think Andy acknowledged that. He stood on the street of Downing Street, without notes, saying to the public: ‘I get it.’”

Robert Jenrick, Reform UK’s Treasury spokesman, told The Telegraph: “Why is Andy Burnham bringing back the same failed politicians and expecting a different result?

“Reform’s answer to the housing crisis is to get building again in our cities and radically cut immigration.”

Rayner Admits 1.5 Million Homes Target Will Be “A Stretch”

The UK government’s ambitious plan to build 1.5 million new homes has faced a major challenge after Deputy Prime Minister Angela Rayner admitted that achieving the target would be “a stretch.” The statement has raised questions about whether the government can deliver on its housing promises while dealing with economic pressures, planning difficulties, and a shortage of available resources.

The target of building 1.5 million homes is part of a wider effort to address Britain’s long-running housing crisis. For many years, the UK has struggled with a shortage of affordable homes, particularly in major cities and areas where demand is high. Rising house prices and expensive rents have made it increasingly difficult for many young people and families to find suitable accommodation.

The government argues that increasing the supply of homes is essential to solving these problems. More new houses could help reduce pressure on the housing market, provide more opportunities for first-time buyers, and support economic growth through construction and related industries. The plan also aims to create communities with better infrastructure, including schools, transport links, and public services.

However, reaching the 1.5 million homes goal will not be simple. One of the biggest obstacles is the planning system, which has often been criticised for being slow and complicated. Developers may face long approval processes, local opposition, and difficulties securing land for new projects. These challenges can delay construction and increase costs.

Another issue is the shortage of skilled workers in the construction sector. Building millions of homes requires a large workforce, including builders, engineers, architects, and other specialists. Without enough trained workers, even approved housing projects may struggle to move forward quickly.

Economic conditions also create uncertainty. High construction costs, expensive materials, and changing interest rates can affect both developers and buyers. Some companies may hesitate to invest in large housing projects if they believe the financial risks are too high.

Angela Rayner’s acknowledgement that the target will be “a stretch” reflects the scale of the challenge facing the government. While the ambition demonstrates a commitment to tackling the housing shortage, achieving such a large number of new homes requires cooperation between central government, local authorities, construction companies, and communities.

Supporters of the plan believe that setting a high target is necessary because Britain has experienced years of underinvestment in housing. They argue that without bold action, future generations will continue to face difficulties finding affordable places to live. A strong housing programme could also create jobs and strengthen local economies.

Critics, however, argue that the government must focus not only on the number of homes built but also on their quality and affordability. Simply increasing the supply of houses may not solve the crisis if the new homes are too expensive or located in areas without adequate services.

In conclusion, the goal of building 1.5 million homes represents a significant challenge for the UK government. Angela Rayner’s warning that the target will be difficult to achieve highlights the practical barriers involved. Nevertheless, addressing the housing shortage remains an urgent priority, and success will depend on effective planning, investment, and cooperation across the country.

The coming years will show whether the government can turn its ambitious housing promise into reality or whether the target will remain an aspiration that is difficult to reach.