NHBC CEO Imtiaz Farookhi says the government’s new Localism Bill needs to ensure that more homes are built in areas where they are most needed.

This, he said, would be one of the tests of the bill’s success.

The Localism Bill, launched on December 13, is designed to decentralise power from central government to local councils and communities.

It includes a “revolution” in the planning system, which ministers believe is currently too adversarial and remote from the communities it affects.

Mr Farookhi said another test of success would be whether the system allows the current shortfall to be addressed at a rate which meets the demands of both local communities and the country as a whole.

“If these measures lead to more homes being built and reduce the burden of bureaucracy, eliminate duplication of regulation and introduce greater certainty into the development process then this will be a considerable achievement,” he said.