The Chartered Institute of Housing (CIH) is calling for the Government to pump funding into the ailing construction sector to stave off collapse and secure more new homes to meet growing demand.

Following the interim results from Redrow yesterday (Redrow Reports £46.2m Half Year Loss), another of the UK's house builders is suffering whilst the number of people needing a new home continues to rise.

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The Government is facing pressure to help car manufacturing and the post office but there is a stronger case for helping the house building sector because as well as securing businesses and jobs it also delivers much needed homes.

CIH Chief Executive Sarah Webb said: "The Government has acted, through the Homes and Communities Agency, to bring forward land and funding for affordable housing. And the re-entry of Government-owned Northern Rock to the mortgage market may help unlock lending in the vital 80-90% loan to value range and allow first time buyers in, but it will not be enough.

"The Government cannot allow the construction sector to collapse and it is becoming increasingly clear that direct support is vital either to keep new houses being built or to use construction workers to renovate our existing homes, nearly a million of which are empty."

(CD/JM)