The annual average of homes built over the past five years has sat at around 210,000, well below the Conservatives’ target of 300,000.
Estate agency Savills warned in a report published this month that new home completions could fall by nearly 25pc in the next year – to 160,000 – if the Government does not step in to provide a boost to the sector.
Marc von Grundherr, director of estate agent Benham and Reeves, said the Government has taken a “head in the sand approach” to the housing crisis – consistently failing to meet house building targets in recent years before scrapping them altogether.
He added: “In an attempt to detract attention away from the monumental failure to build more homes, we’ve seen numerous distraction tactics deployed and a crackdown on second home purchases is certainly one of them.
“Given this segment of buyers accounts for such a small proportion of annual transactions, it does beg the question as to why the Government believes eradicating them will help solve the housing crisis.”
In Wales, young families and first-time buyers who need affordable housing near schools and workplaces in towns such as Haverfordwest, Carmarthen, Tenby, Cardigan and Swansea are looking for houses up to around £270,000 – according to local agents.
Carol Peett, of West Wales Property Finders in Pembrokeshire, said second homes are a totally different category of property – often with a sea view that commands a huge price premium, or chocolate box cottages in the middle of nowhere that are dark, damp and unsuitable for families in need of close-by amenities.
Ms Peett said: “Holiday homes tend to start at about £500,000 and many are well over £1m so they are a completely separate market to properties within reach of local buyers.”