The UK's housing crisis is staring down Prime Minister-designate Andy Burnham like a ticking time bomb, threatening to derail his ambitious plans for government. Millions of people across England are struggling with crippling rent increases, massive waiting lists for social housing, and the increasingly unaffordable property market. Last year's average house price stood at £300,000 – almost eight times the average annual earnings – highlighting the severity of the affordability crisis.
The current Labour government has set a target of constructing 1.5 million new homes in England over five years, requiring an average annual delivery of 300,000 dwellings. However, recent data from BBC Verify shows that only 204,000 new homes were built in the 12 months leading up to March 2026, falling significantly short of the required pace with three years remaining to meet the target.
Burnham has vowed to tackle what he describes as a 'housing crisis,' pledging to deliver 'the biggest council house building programme since the post-war period.' While his commitment is clear, details on how this will be achieved remain sketchy. The government has allocated £39 billion over a decade to fund the construction of 300,000 new social and affordable houses, with most expected to be built by not-for-profit housing associations.
The challenge of increasing council house construction directly is substantial. Council building in England has plummeted since the 1980s, largely due to policies like Right to Buy, which led to the sale of much of the existing stock. In 2025, only 1,970 new council homes were built – a stark contrast to the nearly 200,000 annually constructed in the 1950s.
Should Burnham's definition of 'council housing' include social housing delivered by associations at social rents, his target might be more attainable. His previous tenure as Mayor saw a notable building boom in Greater Manchester, although critics argue that serious housing issues persist within the city region. The implications for first-time buyers remain daunting, with high house prices and crippling debt levels.
Despite these challenges, Burnham's determination to address the UK's housing crisis is evident. As he takes office, he will need to outline concrete plans and convince local authorities to increase their building capacity – a significant task given many have not engaged in large-scale construction for decades.