A group of 21 leading affordable housing providers has written to the new Housing Minister, Grant Shapps, urging him to avoid cutting back affordable home ownership programmes.

The 21 housing associations argue that new housing is in such short supply that the government must continue to fund strong programmes of shared ownership housing (also known as New Build HomeBuy). Last year just 118,000 new homes were built in England, but new households are forming at an average of 252,000 a year - more than double the supply figure.

In the South East only 7,651 new affordable homes were finished, despite over 203,161 households being on the social housing waiting list.

Brian Johnson, chief executive of Moat, said: "Although the public finance situation is obviously very tough, we have to find ways to keep building as many new affordable homes as we possibly can. We have to bear in mind the longer-term consequences of failing to build enough homes. If we cut housebuilding it will just mean higher and higher house prices and less social housing for the growing number of people who cannot afford to buy in the open market.

"More shared ownership homes means more people able to access the first step on the housing ladder and fewer people reliant on a social housing sector that is struggling to deal with demand.

"Maintaining new housing supply is vital for our economy and vital for our society."