New builds to 'fall below 90,000'

The property slump has "heavily damaged" the number of new home starts this year, according to SmartNewHomes.com.

David Bexon, managing director of the website, suggests that the level of new homes that have gone on the market during the past six months has fallen by 40 per cent.

The lack of new homes could see more people elect to buy a plot of land and build their own home.

Mr Bexon says that the government's plan to build three million new homes by 2020 is looking an "increasing implausible target".

He adds that the number of new home completions for this year will fall "far below" the level require to meet the target and he expects "the number of new homes built to drop below 90,000".

Anthony Duggan, head of research at Drivers Jonas, also suggests that the level of new starts over the next six to 18 months will remain low.