The number of new homes completed in England last year fell to its lowest level since 1923, Government figures showed yesterday.

Just 102,570 properties were built in 2010, 13 per cent less than in the previous 12 months, and the lowest level during peacetime since 1923, according to Communities and Local Government.

There were double digit falls in the number of homes both started and finished during the final quarter of the year, as the construction industry was hit by bad weather.

Only 23,000 homes were started in the three months to the end of December, 11 per cent fewer than during the previous quarter, while the number completed fell by 13 per cent to 23,190.

Within the total, the fall in completions was greatest among private developers, with the number of properties they finished diving by 18 per cent, compared with a three per cent rise for housing associations.

The annual level of completions is well below the 232,000 properties it is estimated need to be built in England each year to keep pace with rising demand.

Stewart Baseley, executive chairman of the Home Builders Federation, said: “Today’s figures reveal the extent of the housing crisis and we need real action now to prevent the crisis deepening.

“The problem is that we have a planning system in the midst of radical change, expensive and unnecessary red tape and a shortage of mortgage availability.

“If we are going to weather this perfect storm, tackle the housing shortage and produce growth across the country we need early action to resolve and simplify planning, reduce regulation and encourage lenders to lend again.”

The figures came as the government announced the first £200 million of a new scheme to encourage local communities to build more homes has been allocated to councils.