The House Builders Association, a division of the National Federation of Builders, today called for a root and branch reform to the chaotic planning system and urgent action on funding, following the Government's announcement on housing and growth.

Julia Evans, Chief Executive of the NFB, said: "While much of this is welcome it does not provide any immediate stimulus to housebuilding – most of the measures will take some time to be finalised, introduced and to take effect.

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"The most important issue for house builders remains lack of mortgage funding for purchasers and shortage of developer finance for smaller developers. We have seen no sign to date that the Funding for Lending scheme is making any difference to this problem.

"The reduction in affordable housing requirements is welcome but unless local authorities are willing to start negotiating immediately, ahead of legislation, then it is likely that it will not be until late 2013 that these proposals will have any effect.

"It is disappointing that there are no effective measures to simplify, speed up and, particularly, reduce the cost of making planning applications."

Housebuilding is at its lowest level since the 1920s, and mortgages are at around half the levels of 2007.

(CD)