The latest Housing Pipeline report reveals that approvals fell by a third to just 24,872 homes across England in the second quarter compared to the previous three months.

The approval returns cover the first quarter since the National Planning Policy Framework came into force in March.

Worryingly for Government this period recorded the lowest number of housing approvals in England since 2009, and well under half the level (55,466) granted during the house building peak of 2007.

To meet officially projected need, builders need to deliver around 60,000 homes per quarter in England alone.

The NPPF replaced the old ‘top down’ planning system of housing targets and handed much more power to local authorities for housing delivery.

The Home Builders Federation has commissioned construction information specialist Glenigan to carry out the research.

It warnend the new figures were a huge wake-up call to Government, which is looking for ways to increase supply and drive economic growth through housing construction.

Stewart Baseley, Executive Chairman of the HBF, said: “Under the new planning system local authorities have much more power over what is built in their area.

“But with that power comes a responsibility to provide the housing their communities need. Government needs to ensure that councils are meeting this responsibility.”

He warned: “Ministers have in the past year unveiled some very positive measures aimed at boosting housing supply, particularly the NewBuy scheme, but they cannot succeed unless we have a truly pro-growth planning system.”

Allan Wilén, Glenigan’s Economics Director, added: “The drop in residential planning approvals during the second quarter of 2012, after what had been a positive start to the year, is disappointing.

In particular the slowing in private housing approvals indicates that housing market conditions remain fragile.”