Housing association figures for the three months to the end of May also revealed a decrease in applications, although less severe, with starts totalling 9,165 - a decrease of 14 per cent on the same period a year ago (10,638).

Imtiaz Farookhi, NHBC Chief Executive, says: "Our figures show that so far this year there have been 58,863 new homes started by the combined private and public sectors, representing a drop of 34 per cent on the same period in 2007. (89,254).

"Whilst our figures reflect a slow-down in production on housing sites, as builders continue to respond to difficult trading conditions, registrations during the three months from March to May last year were particularly strong, which has exaggerated the year-on-year percentage decrease in registrations."

NHBC statistics show new build completions totalled 40,271 in the three months to the end of May this year - 14 per cent lower on the same period last year when 46,646 new homes were completed.

Additional figures for the three months from March to May 2008 show that the average number of daily sales of new homes in the UK was 452, a decrease of 18 per cent on the same period a year ago (549).

Ends

Note to editors:

· FOR A BREAKDOWN OF NEW HOMES REGISTERED BY REGION / COUNTRY PLEASE E-MAIL mblamey@nhbc.co.uk

· NHBC is the leading warranty and insurance provider for new homes in the UK. It was established more than 70 years ago as a non-profit distributing company. NHBC's primary purpose is to help raise standards in the new house-building industry and provide consumer protection for new house buyers. NHBC's ten-year 'Buildmark' warranty covers more than 80% of new homes built in the UK and currently protects more than 1.7 million homes.