A House of Lords committee has criticised the government's housing plans and stated the policy is "short sighted".

Around 240,000 new homes are needed each year to meet demand within the UK.

However, the Committee on National Policy for the Built Environment has concluded this target is not possible by relying on private sector developers alone.

It suggests letting councils and housing associations play a bigger role, urging the government to review its borrowing restrictions on local authorities and its decision to reduce social rents.

Baroness O'Cathain, Chairman of the Committee, said: "It is increasingly clear that we need to build more houses in England and we wholeheartedly support that objective. However if we build those houses in the wrong place, to a poor standard, without the consent of local communities we are only storing up future misery for the people in those houses and others nearby.

"That is why we are recommending local authorities are once again empowered both to build new homes of their own, and to ensure all developments are of a suitably high quality. Spending a little bit extra on good quality design at the outset can avert massive costs to people, society and Government in the long-run."

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The Committee added it was also 'extremely concerned' about the quality of new developments, suggesting housing delivery is being prioritised at the expense of build quality.

It is calling on the government to revise its National Planning Policy Framework to reduce the unreasonable use of viability assessments by developers to avoid funding affordable housing and infrastructure.

Baroness O'Cathain added: "The Government should review the National Planning Policy Framework to make sure developers aren’t using financial viability to play fast and loose with design quality and sustainability. If developers submit substandard plans local authorities should be able to ask them to think again without builders falling back on questionable viability assessments to get their way.

"We are also calling on the Government to appoint a Chief Built Environment Advisor to work across government departments to integrate planning policy and act as a champion for higher standards and good practice. It’s important that the Government sets a good example and leads from the front on design quality."

Other key recommendations include:

• Reconsidering the proposal to include ‘starter homes’ within the definition of affordable housing.

• Reconsider additional elements of the Housing and Planning Bill which would undermine the maintenance of mixed communities.

• Appointing a Chief Built Environment Advisor.

• Reverse the decision to do away with the zero carbon homes requirement and Code for Sustainable Homes.

• A new strategy for managing the historic built environment

• Make a design review mandatory for all major planning applications

• Council planning departments need to be better resourced and the planning profession needs to rediscover the prestige it once had.

(LM/MH)