During 2009/10, the housing supply increased by 128,680 properties – the lowest level since 2000, and 23% lower than last year.
The fall in housing supply numbers was driven by a gradual drop in new-build properties, according to department figures.
For the period of September, the housing market remained subdued with falls in sales levels and mortgage approvals for people buying a home.
Stewart Baseley, executive chairman of the Home Builders Federation, said: “There is no doubt that the previous planning system was not succeeding in delivering enough homes – but housing delivery, crucial to solving the housing crisis, is not yet increasing and in many areas has actually fallen.”
He added: “These figures reveal the extent of the housing supply problem and the need for real action now – cutting red tape and implementing incentives so we can build the homes the country needs.”
