The net supply of new homes in England has dropped by 6% in a year, official figures showed today.
The Department for Communities and Local Government (CLG) said that annual housing supply amounted to 121,200 net additional dwellings from April 2010 to March 2011.
This represents a 6% decrease on the 128,680 net additional homes supplied the previous year, and compares with a steeper 23% fall the year before that, CLG said.
The annual report shows the supply of housing in England by measuring the absolute change in dwelling stock, including the number of completed new house builds and gains or losses through conversions and changes of use, minus demolitions.
The latest new homes figure includes 117,700 new-build homes, 5,050 additional homes resulting from conversions, 11,540 extra homes resulting from a change of use, as well as 1,810 other gains and a loss of 14,890 homes through demolitions.
London saw the biggest decrease of new homes, with a 27% fall on the previous year to reach 17,830 in the latest figures.
The North East saw the biggest supply increase at 26%, reaching a figure of 4,710 more homes in 2010/11.
After tailing off slightly between 2000 and 2002, net housing supply increased for six years in a row, peaking at 207,370 additional homes in 2007/08.
The overall fall in the latest figures was due to 6,500 fewer new-build completions, 1,180 fewer conversions, and 2,060 fewer extra dwellings resulting from changes of use.
The figures were offset by an increase of other types of accommodation, such as mobile homes and temporary dwellings, which rose by 840.
Fewer homes were also knocked down, with a fall in demolitions of 1,440 on the previous year.