The Home Builders Federation argued that a replacement for the previous government's regional spatial strategies, which the new leaders have scrapped, had to be introduced in order to avoid a housing shortage.
Steve Turner, head of communications at the body, said: "If the government takes action now and gets the planning system working ... we hope [housebuilding] won't drop as far as it possibly could."
He noted that the construction of residential property fell to its lowest level since 1923 last year and that the future of the industry depended mainly on the rules imposed by the authorities to replace regional spatial strategies and the availability of mortgages.
Mr Turner's comments follow the release of a statement from the National Housing Federation, which claimed that plans to build nearly 85,000 homes have been scrapped as a result of the government's axing of local targets on the construction of accommodation.
Written by Charlie Parkin