The Homes and Communities Agency (HCA) has revealed that its development assets have dropped by £1.1bn due to the housing crash and, as a result, a third fewer social homes will be built.

Completions will rise in 2010 as 61,500 properties will be finished in comparison with 2009 when 55,625 were built. This is due to an injection of money from the Government as Gordon Brown announced in June that an extra £1.5bn in funding was to be made available for new homes.

This extra funding has resulted in only a temporary increase as grant-funded housing starts scheduled for 2010/11 are only 29,900, which is -34% less than the 45,500 target for the financial year of 2009/10. Within those figures ‘social rented’ homes to be built under the National Affordable Housing Programme will go down from 30,389 in 2008/09 to 14,500 in 2009/10, this is over a -50% drop.

Sir Bob Kerslake, HCA’s chief executive, said: “Overall this has been a year of considerable achievement and despite tough operating conditions, the HCA has delivered in all of its key areas during its first months of operation.

“This year and next will be equally challenging but we will continue to deliver against our targets, identify new funding streams and new ways of working, and maximise the impact of every pound of public money we invest.”