Shadow housing minister and Erdington MP Jack Dromey has pledged to meet SME housebuilders to try to address the housing crisis.

Mr Dromey, speaking at a National Federation of Builders (NFB) and Federation of Master Builders (FMB) fringe event at the Labour Party conference in Manchester, said that housebuilding had played a key role in transforming the British economy in the past and ‘now is the time to do so again to stimulate jobs and growth.’

Both organisations claim the SME housebuilding sector has fallen by 69 per cent since 1988.

Julia Evans, chief executive of the NFB, said: “Members are finding it incredibly difficult to build.

“Finance is almost impossible to come by. Planning is in complete chaos. A host of regulations are heaping on complexity and cost.

“To some of our members these factors have brought building to a standstill.”

FMB’s chief executive Brian Berry added: “Government needs to create a robust framework that will enable SME housebuilders to help deliver the 240,000 homes that are needed every year to meet our housing need.

“Reduced regulation and a more realistic approach to developers’ contributions would certainly help.

“However a Government commitment in terms of enhanced investment is what is needed to transform the housing market and get SME housebuilders back into work.

“Labour’s commitment to reduce VAT on housing repairs to five per cent is a crucial step forward.”

Fellow panellist Heidi Alexander, Labour MP for Lewisham, said: “Currently we are only building half the number of homes needed, which is leading to long waiting lists and unacceptable overcrowding.

“Smaller builders are crucial because they can turn sites around much more quickly than many larger companies, utilising smaller plots of land.”