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Mortgage applicants may find it increasingly difficult to buy the home of their dreams as the property market is hit by a shortfall in available housing options.

The decline in supply is a matter of urgency and needs to be resolved sooner than later, according to the Home Builders Federation (HBF).

This matter is of prime importance and needs to be redressed by the government, claimed the organisation.

Steve Turner, head of communications at the HBF, said: "There are implications both socially and economically to get this right. We estimate that we have already got a housing shortfall of a million and, [for] every year that we are not building 200,000 plus homes, that million shortfall is getting bigger."

He went on to suggest that proposed government plans to make housing more affordable should be clear and transparent in their approach. He also argued that further details regarding these plans were needed, which should be designed in such as way so as to benefit the community as a whole.

"We need to see the exact detail so that local authorities can work out exactly what they will receive as soon as possible," he added.

Last month, the Policy Exchange published a report that identified that the current planning system was leading to a decline in supply of affordable housing, which was in turn pushing up house prices in the property market.

The report proposed a community-controlled planning system to replace the current rules. Under this, those directly affected by a proposed housing development should be given the right to decide whether or not a project should go ahead or not.

It was suggested that financial incentive as well as amenities should directly benefit existing residents and this should substantially increase both the number and quality of homes to be built.