The Home Builders’ Federation (HBF) highlighted that the building sector has continued to run at its lowest output since 1924, when just 86,000 homes were built.
It said that levels in 2010 were less than half the estimated 232,000 new homes that need to be built each year until 2030 to meet demand.
CLG figures showed that in Q4 2010, housing completions in England were down 13% on Q3 to 23,190 and 16% down on the same period of 2009. Completions rose 1% between Q2 and Q3.
The CLG figures came at the same time as the government announced details of its New Homes Bonus, which will aim to encourage local authorities to build more homes as part of the proposed new planning system.
However, planning approvals fell significantly in 2010 as a result of a ‘policy vaccum’, the HBF said, with the old planning system abolished but not replaced shortly after the new government came into office.
In a statement, the HBF said action was urgently needed to prevent the building crisis deepening, with the New Homes Bonus a key part of the process. However, the HBF maintained it was no “silver bullet”.
It said: “The problem is that we have a planning system in the midst of radical change, expensive and unnecessary red tape and a shortage of mortgage availability.
“If we are going to weather this perfect storm, tackle the housing shortage and produce growth across the country, we need early action to resolve and simplify planning, reduce regulation and encourage lenders to lend again.”
