Burnham Dumps Labour's 'Build Baby Build' Housing Plan

Andy Burnham’s New Approach to Tackling the Housing Crisis

Andy Burnham is set to take a different approach to addressing Britain’s housing crisis, moving away from Labour’s previous “build, baby, build” slogan. Instead, he plans to adopt a more collaborative strategy with housebuilders and councils, aiming to boost the construction of council homes as part of his broader plan.

The i Paper understands that Burnham will focus on working closely with developers, housing associations, and regional mayors, rather than taking a divisive stance like his predecessors. This shift marks a significant departure from the rhetoric of pitting “backers” against “blockers,” which was a key element of Keir Starmer’s approach.

Labour’s Housing Target Is Off Track

Labour’s ambitious goal of building 1.5 million new homes by 2029 has fallen significantly behind schedule, according to Whitehall insiders. Despite the outgoing prime minister’s promise to tackle so-called “Nimbys” (Not In My Back Yard) and support builders over blockers, the progress has been slower than expected.

Current Housing Secretary Steve Reed initially adopted the “build, baby, build” mantra when he took office in September last year, insisting that Labour would meet its target. However, his position may be under threat, as his predecessor, Angela Rayner, is being considered for a return to the role.

One insider told The i Paper that the phrase “build, baby, build” will not be used at all by the new administration.

Progress So Far

Since July 2024, the government has delivered an estimated 342,100 net additional homes in England. Between the start of Parliament in July 2024 and June 2026, around 392,400 net additional homes were built. However, these numbers are still far below the 300,000 per year needed to meet demand.

Government statistics for the year ending March 2026 show 130,170 new-build starts and 143,110 completions, which are well below the required level. Reed’s department, the Ministry of Housing, Communities and Local Government (MHCLG), has been holding discussions with Rachel Reeves’s Treasury about the slow pace of housebuilding.

Despite the challenges, the 1.5 million target remains in place, although it is unclear whether Burnham will commit to it. He has previously pledged to stick by the manifesto and its promises.

A Collaborative Strategy

Burnham is reportedly looking to develop a more cooperative relationship with developers, housing associations, and regional mayors. This approach contrasts with the previous strategy of focusing on “backers” versus “blockers.”

He has assembled a team of housing policy experts who are exploring how regional mayors could lead a major council housebuilding program. This could see mayors acting as landlords, using their rental income to reinvest in housing stock.

In a 2024 interview with The i Paper, Burnham called for central government to grant combined mayoral authorities, such as Greater Manchester, housing revenue accounts (HRAs). These accounts would allow them to manage their own housing stock finances effectively.

“Housing is a risk to growth,” Burnham said at the time. “If people can’t find places to rent, they won’t move here because it’s too difficult to live.”

Financial Challenges and Criticisms

Critics argue that Burnham cannot afford to build council homes. However, one Whitehall insider pointed out that England’s Housing Benefit bill now costs £36 billion annually, and this figure is expected to rise.

Unlike social and council housing rent, Housing Benefit is often paid to private landlords, offering no return for the state. “The question is whether we can afford not to build council homes,” the source said.

A Dysfunctional Housing Market

Experts describe the current housing market as the most dysfunctional in decades. High building costs and low affordability have stalled the market. Some of the UK’s largest housebuilders, such as Vistry, are struggling financially.

The change in prime minister has also delayed the allocation of £39 billion in funding for the Social and Affordable Homes Programme (SAHP), which aims to deliver around 300,000 social and affordable homes.

Housing and Planning Minister Matthew Pennycook recently defended his record at the Housing Select Committee, stating that the funding needs to be allocated as soon as possible to support housing associations and builders.

Neal Hudson, a housing market analyst, said: “The housing market right now is more dysfunctional with fewer opportunities for recovery.”

Concerns Over Funding and Leadership

While many in the social housing sector welcome a Burnham-led government, there is nervousness about whether Pennycook will remain in his post to deliver the SAHP funding. Many builders and housing providers are relying on this funding.

A Possible Return for Angela Rayner

There are suggestions that Angela Rayner could return to her role as Housing Secretary, though Burnham’s team has not confirmed any Cabinet decisions. Rayner, who stepped down last year over tax issues, has since been cleared by HMRC.

She pushed forward the English Devolution and Community Empowerment Act, giving mayors greater planning powers. She has also suggested that mayors should have even more power.

Burnham is interested in expanding on Rayner’s decision to devolve Homes England, the agency tasked with tackling the housing crisis.

Learning from History

Burnham has drawn inspiration from the post-war council housebuilding drive under Clement Attlee. While this period saw massive government investment in housing, it relied on significant borrowing and tax increases.

The i Paper reports that Burnham is considering different funding methods and is not aiming to replicate the post-war housing boom directly.

The success of Stockport Development Corporation’s regeneration project, which combined public and private funding to build around 8,000 homes, is seen as a potential model for future developments.

However, as housing expert Neal Hudson notes, “any sensible solutions like his plan for building more council homes will cost money. That’s something we don’t have much of without increasing or reforming taxes.”

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