The latest statistics from the trade body revealed that house building up to March 2010 will slump to its lowest level since 1923, when just 86,000 homes were built.
Only 122,700 new homes are expected to be built in England and Wales between April 2009 and March 2010. This is 18,000 fewer than were built in the previous financial year.
The drop in building, caused by private developers scaling back developments following the onset of the recession, has fuelled fears that a housing shortage will leave millions trapped in overcrowded and substandard housing.
David Orr, chief executive of the NHF, said: “With record housing waiting lists and overcrowding reaching epidemic proportions across the country, the need for more affordable housing has never been greater.”
Melanie Bien, director of Savills Private Finance, said she hoped the parties would demonstrate their commitment to the market but she believed that other priorities such as education and health would take precedence over housing.
