Ministers are being urged to cut targets for new house building.
The government's plans to build three million affordable homes by 2020 are under threat as a result of the financial crisis, it has been claimed. According to the Environmental Audit Committee, residential development has taken a downturn since the economic problems began.
The group - which is made up of MPs from all three of the main political parties - is calling for an urgent review of the target in light of the current climate. It claims that unless there is a downward revision of the figures, there is a risk that greenfield land could be lost unnecessarily.
Tim Yeo, chairman of the committee, said: "Government targets for house building are intended to make homes more affordable by increasing supply. But these ambitious targets were agreed in a time of economic optimism and easy credit."
The Campaign to Protect Rural England has welcomed the report. Spokesperson Kate Gordon said the group "wholeheartedly endorses" its recommendations.
However, critics have insisted that the report is damaging. Alex Watson, chairman of the North East Regional Assembly, told the Journal that there is a "desperate" need for new affordable housing in his area, with waiting lists getting longer despite the credit crunch making it harder for people to secure mortgages.
