New figures released today from the National House Building Council show public sector housing registrations plunging 41% for the rolling quarter March to May.

Just 7,000 new homes were registered in the three month period compared to 12,000 the year before.

Registrations to build private new homes, the current engine for much-needed growth in the UK’s overall housing supply, also decreased, down 3% at 20,035 in 2012.

The NHBC warned that year on year comparisons were still being slightly skewed by the Olympic Games.

Around 2,800 London Olympic Village properties split roughly evenly between the private and public sectors were registered during the comparison period last year.

Without the Olympic Village effect public sector home starts fell 33% and private sector homes rose 5%.

The West Midlands and Wales experienced overall net housing growth over the last three months .

Richard Tamayo, NHBC commercial director said: “Our registration statistics continue to show a divide between the direction of travel for private and public sector registrations in the UK – with social housing levels falling but slight increases in the private sector.

“It is clear the Government is maintaining its focus on increasing housing levels, as seen by Vince CabIe’s recent housing crisis summit with Grant Shapps.

“It is critical that we also continue to monitor initiatives such as the NewBuy scheme to assess their success in increasing the number of new homes built across the UK.”