House building starts rose 23% in 2013 to reach a six-year high of 122,590, according to Government statistics.

The boost comes amid concerns that housing supply is not keeping pace with demand but the figure remains well off the peak of 183,000 in the 12 months to March 2006.

The data also showed a 5% year-on-year fall in housing completions in 2013 to 109,370.

On a quarterly basis, starts in the final three months of 2013 were up 23% on the same period a year before, while completions were up 6%.

Communities Secretary Eric Pickles said: ”This Government is fixing the broken housing market we inherited in 2010.

”Last year we built the most homes since 2007, and even the appalling weather conditions this winter have not stopped our hardy builders from getting the job done.

”That means an increase in small firms benefiting from the surge in construction orders, and more business confidence in the economy.”

But Campbell Robb, chief executive of housing and homelessness charity Shelter, said: ”What these figures really show is that we are building less than half of the 250,000 homes needed each year just to keep up with demand.

”With thousands of young people and families already beginning to give up hope that they will ever be able to afford a home of their own, this woeful gap between the homes we need and the homes we have spells disaster for future generations.

”Any uptick in housebuilding is to be welcomed, but we're still nowhere near meeting our housing shortage.”

Matthew Pointon, property economist at Capital Economics, said the rapid growth in housing starts was taking place on the back of the improving economy and the Government's Help to Buy scheme.

”But with builders already facing material and labour shortages, and the demand for new homes partly dependent on a temporary Government subsidy, we doubt such rapid growth will be maintained,” he added.

”It will be close to the end of the decade before house building is back to pre-crisis levels.”

”If demand is overly dependent on the Help to Buy scheme, builders will be understandably nervous about ramping up production when it is due to end in early 2016 - which is also likely to coincide with rising interest rates.”