The deficit is based on Kate Barker’s housing supply review ten years ago which stated 210,000 private homes a year were needed in England to avoid a housing crisis.
But since then only 115,000 homes a year on average have been built.
In its report, the HBF states 260,000 private houses need to be built every year to reduce this long-term trend and “price households” back into the market.
Since the launch of the Help to Buy schemes 17,000 people have snapped up homes using government assistance.
Most people used the equity loan arm of the scheme to buy a property (14,823), while 2,572 bought a home using the mortgage guarantee element.
In last week’s Budget George Osborne announced the equity loan scheme would continue to 2020.
But in its conference today the HBF is warning that all parties need to prioritise policies that will allow the increases in housing starts to be sustained.
Regardless of which party wins the election in 2015 the Help to Buy equity loan scheme should remain in place.
Stewart Baseley, executive chairman of HBF, said: “Whilst the Help to Buy equity loan scheme is finally starting to drive demand and significantly increase supply we start from a very low base and the shortfall is huge.
“As we approach a general election, we now need to see all parties committing to policies that lead to a sustained increase in house-building.”
