It is understood that developers are reluctant to submit planning applications owing to the costs involve and a lack of confidence in the market – highlighting the challenge for Labour which is pledging an additional 1.5 million homes in five years.

Knight Frank’s associate in residential development research, Anna Ward, commented: “The supply pipeline of new homes across England is under pressure, with new applications falling sharply in recent quarters. This has been driven by a weaker appetite to build in light of higher finance costs, a weaker sales market, rising build costs and planning delays. This has contributed to a plunge in new homes coming forward and illustrates the extent of the challenge for the UK government which has pledged to get Britain building again.

“However, while challenges remain, the recent fall in mortgage costs and the fact that planning and development are front, and centre of the government’s objectives has already boosted sentiment and should give more developers confidence in bringing new housing projects forward. Crucially, those that act now in bringing schemes through the planning system will be selling new stock in a market facing a sharp supply crunch in the near term.”