They slumped from 12 per cent in 2016/17 to 6.4 per cent in 2017/18, said the Department of Housing.
There were 163,940 new homes built in 2015/16 and 183,570 the following year — a rise of 12 per cent or 19,630 extra properties.
But only 195,290 were constructed in 2017/18 — a rise of just over six per cent or 11,720 homes.
It comes despite Government pledges to build amid a national housing crisis.
Joseph Daniels, founder of modular smart homes developer Project Etopia, said fewer homes had become available in 2017/18 than ten years ago.
He said: “The country faces a race against time to get house building up to speed but the needle has barely moved in the last year, rising from a walk to a gentle jog.
“Failing to maintain the building rate is socially unsustainable as the gap between the haves and have-nots widens each year.
"A fresh approach is needed, along with a greater sense of urgency to ensure people are provided with quality accommodation in the future.”
Communities Secretary James Brokenshire said: “We are determined to do more to keep us on track to deliver the homes communities need.
“That’s why we have set out an ambitious package of measures to deliver 300,000 homes a year by the mid-2020s.”
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