The latest trading statement from the house builder said it was particluarly concerned about the level of social housing grant that will remain after the next round of cuts are unveiled.

The house builder joins a growing lists of private builders, trade bodies and housing associations, warning that affordable housing could disappear under deep spending cuts.

In the medium term, Taylor Wimpey said it was concerned that a shortage of consented land will slow the recovery in volumes, which would be further hit by changes to planning policy.

“Although the Budget did not contain new measures, we remain concerned regarding future spending reviews that could impact on housing inititatives, particularly Social Housing Grant,” said the statement.

Private house sales strengthened again after the pre-Election slowdown and mortgage availability had improved slowly since the start of the year.

“In the short term, with ongoing political and economic uncertainty, we continue to run the business on a cautious basis, with selective land investment and an ongoing focus on costs and cash,” it said.

Taylor Wimpey expects to complete around 4,650 homes in the first half of the year, marginally down on last year but at an average selling prices of £167,000 against £153,000 last time.

In the US, it said there were clear signs of a sustainable recovery that would become apparent at the end of the year.