The Government faces an "uphill battle" to meets its goal to build one million new homes by 2020, according to the National Federation of Builders (NFB).

New figures by the Department for Communities and Local Government (DCLG) have revealed 167,700 new homes were completed between Q3 2015 and Q2 2016, below the Government's self-imposed annual target of 200,000.

In addition, the average price of a UK house has risen from £168,703 in December 2010 to £219,544 in December 2016.

The NFB and the House Builders Association (HBA) both believe the Government's housing policies have contributed to inflating demand for housing without boosting supply.

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However, the NFB said due to the Government using net additions to the housing supply, it could still potentially reach its 2020 target.

"The Housing and Planning Act 2016 focuses excessively on purchasing – rather than encouraging different types of ownership and supply – and has restricted the ability of local authorities to build new homes," the NFB said.

"The Government does not seem intent on building on the Housing and Planning Act, as much as rewriting key areas. The Neighbourhood Planning Bill proposes to amend significant parts of the Housing and Planning Act, while the Housing White Paper looks set on diluting some of its key features.

"The NFB thinks the Government ought to seize this opportunity to work with industry on practical solutions, rather than rolling out initiatives and see what sticks."

(LM/MH)