There is not going to be a significant increase in the number of house starts until loan availability improves, according to a trade association representing the interests of homebuilders in England and Wales.

Steve Turner, head of communications at the Home Builders Federation, said that until people can borrow money at a competitive rate, they will not be able to buy homes and so developers will not build them.

He added that although there have been increases in the number of house builds this year, the improvement is in comparison to a real low last year when the UK was in the depths of a significant downturn.

The value of new construction starts decreased by eight per cent between January 2009 and 2010, according to the Glenigan Index.

During the same period, new private housing starts decreased by 20 per cent, the index showed.