THE number of new homes being built in England looks set to slump to an 88-year low in the coming financial year, it was warned today.
The National Housing Federation expects just 70,000 homes to be completed during 2009/10 – around half the 140,000 properties that will be built this year.
The group said the figure was the lowest since 1921, with the exception of years during the Second World War.
Around two-thirds of the homes being completed will be built by housing associations, as struggling private builders mothball developments across the country until the market picks up.
The combination of the recession and the credit crunch make it look increasingly unlikelyGovernment building targets will be met.
The Government wants 240,000 new properties to be built every year by 2016, but building levels are currently falling rather than rising.
The Federation is calling on the Government to introduce a package which would fund the building of 100,000 affordable homes during the coming two years, at a cost of around £6.3bn.