Regional building crisis threatens 1.5M homes target

The UK’s pledge to build 1.5 million homes faces a critical but overlooked challenge – the dramatic decline of regional housebuilders capable of delivering community-focused developments. That’s according to electrical specialist Garo who highlights the issue in a new report.

Industry analysis reveals SME builders now deliver just 10% of new homes, a figure which was previously 40%[1], creating a significant gap in regional housing delivery. This collapse in local building capacity comes at a crucial moment when housing electrical requirements are becoming exponentially more complex.

Modern homes demand consumer units that can handle bidirectional power flow from solar panels, manage high-power EV charging points, and incorporate smart monitoring systems – all while maintaining capacity for future innovations. For SME builders operating on tight margins, these technical demands create significant financial and operational challenges.

“The combination of ambitious construction targets and increasingly sophisticated home technology creates a perfect storm,” says Dan Dempsey, National Sales Manager at GARO Electric. “Modern homes require advanced electrical infrastructure to support everything from EV charging to heat pumps – yet we’ve lost the very builders who best understand local market needs.

“While larger developers excel at volume delivery, regional builders have traditionally delivered developments that reflect local architecture, demographics, and price points. Their decline impacts our ability to create diverse, well-integrated housing solutions across different communities.”

The situation is set to become more challenging. The Future Homes Standard, due in 2025, will require new homes to produce 75-80% less carbon emissions than current standards. This demands even more sophisticated electrical systems, potentially further squeezing regional builders already struggling with technical complexity and cost barriers.

These challenges extend beyond individual properties. As homes evolve from passive energy consumers to active participants in dynamic energy networks, the loss of regional building expertise threatens both housing delivery and the UK’s broader transition to sustainable communities.

Data suggests that without addressing this technical and financial burden on smaller housebuilders, the government’s ambitious housing targets may prove difficult to achieve, particularly in regions where local building knowledge is essential.

Dan Dempsey continued: “The implications reach far beyond simple housing numbers. At stake is not just the government’s 1.5 million homes target, but the very character of Britain’s regional housing development and its ability to create the sustainable, community-focused developments that the next generation of homeowners will demand.”

To download Garo’s specialist report on the topic, click here https://www.garoelectric.com/electrical-products/consumer-units/shapingtomorrow