The figures show that building works were begun on only 37,900 new properties, 10 per cent less than the equivalent quarter in 2006.
This continues the downwards trend that the DCLG saw begin in the second quarter of 2006, casting fresh doubts on the likelihood of meeting governmental housing targets for 2020.
This is further compounded by reports that insurers will not provide cover for properties built on flood plains, rendering them uninhabitable.
On a more positive note, completions grew in between October and December 2007 to rest at 48,500 - 15 per cent more than in 2006 and the highest number of completions in a final quarter since 1988.
Whilst the number of new starts may not be as large as hoped, the overall number has increased from the 141,700 seen in 2000/01. However the current figure of 166,990 is much less than the 184,900 peak seen in 2005/06.
