Research commissioned by audit, tax and consulting firm RSM UK shows that 31% of property businesses think the government will achieve its target of building 1.5 million homes during their five-year term in parliament.

Affordable housing targets were found to be the biggest barrier to meeting housebuilding targets (31%) alongside land availability (31%). Further barriers outlined by property businesses included buyer affordability (28%), planning challenges (28%) and shortage of skilled workers (25%).

In addition, 47% said green belt land should be made available for development beyond grey belt land. Half of businesses also said that Skills England will help to address labour challenges in real estate and construction.

John Guest, partner and head of social housing at RSM UK, said: “Registered providers (RPs) of social housing continue to face a challenging balancing act of managing tight margins, meeting government’s housebuilding targets, and ensuring quality and safe existing stock. There are some concerns about the sustainability of increasing the output affordable homes each year, especially with incoming increases to employers’ National Insurance contributions which will further squeeze budgets.

“In order to realise this number of new affordable homes and increase the viability of broader housebuilding targets, RPs need clarity and funding from government on its five-year rent settlement plans. Additionally, last week’s announcement relating to the Planning and Infrastructure Bill will be crucial to accelerating delivery of new private and affordable homes.”

He added: “However, it’s encouraging to see businesses think Skills England will help to address labour challenges, but there does need to be greater focus on investment in technology to deliver greater efficiencies and reduce financial burden. This, coupled with greater transparency on planning reform, will remove barriers relating to housing targets and skilled worker shortages.”