Statistics released by the Department for Communities and Local Government (DCLG) have revealed that although there were 124,720 net (new to market) additional dwellings in 2012-13, this represented a decrease of 8% compared to 2011-12.

Of these 124,720 dwellings supplied; 118,540 were new build homes, 4,100 additional homes resulting from conversions, 12,780 additional homes resulting from change of use, 1,370 other gains and a loss of 12,060 homes through demolitions.

Peter Williams, Executive Director of the Intermediary Mortgage Lenders Association (IMLA), said: “By revealing a fifth successive annual decline in net additional dwellings in England during 2012/13, these figures make it absolutely clear why the government has been justified in taking action on a national scale to reignite the construction sector. At just 124,720, the net supply of homes in the last year was the lowest it has been in the last 13 years – and barely half the volume seen at the peak of the market.

“So far the Help to Buy equity loan scheme has engaged over 900 developers and prompted an impressive number of registrations from aspiring homeowners. While the supply has slowed, there remains a great untapped demand for property among the British public. Thanks to Help to Buy, the supply figures for 2013/14 should at least begin to paint a better picture.”

In 2007-08 there were 223,530 net additional dwellings, the following year 182,770, an 18% fall and this trend has continued with the number of additional dwellings decreasing annually for the last five years.