In its latest News & Views section, it said that the constraint in the flow of housing supply and finance supply is difficult to avoid for the foreseeable future and it has asked the Government to help the market climb out of the housing shortfall that currently exists.

Last week, the Survey of English Housing from the Department of Communities and Local Government, revealed that home-ownership fell between 2005 and 2006. The research said the future housing market is likely to see a smaller proportion of home-owners and a higher proportion of tenants.

At the CML’s “Future Housing” conference held last week, speakers said private sector funding constraints and public sector spending cutbacks are likely to produce a significant shortfall in the supply of both housing finance and housing.

Kay Boycott of Shelter, Peter Williams as chair the National Housing and Planning Advisory Unit (NHPAU), and John Stewart for the Home Builders Federation all pointed to the significant imbalance between supply and demand.

Between 1999 and 2009, the number of new homes built each year has ranged from around 130,000 to around 170,000. The NHPAU estimated a range of 238,000 to 290,000 new homes needed per year are required to meet housing need while Shelter suggests an average need of 242,000 homes per year.

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The CML has also estimated that 80% of all people who are under 30 now need financial help from a parent or relative to get on to the housing ladder. The figure was only at 45% before the credit crisis.

It added that the overall effect is that for of 25-34, the likelihood of buying at the moment is around half its level of a decade ago.