The number of social homes being built has fallen by almost 90 per cent since the Conservatives came to power in 2010, new official figures have revealed.

Just 1,409 of the lowest-cost homes were started in England in the 2017/18 financial year - down from 39,402 in 2009/10.

However, more social homes were built last year than the previous year after ministers responded to the Grenfell Tower disaster by promising new investment in low-cost housing.

The fall since 2010 comes after Conservative ministers decided to divert funding for social homes into more expensive types of property, namely "affordable" homes. These are rented out at up to 80 per cent of market value, whereas social rents are typically set at around 50 per cent of market rates.

At the same time as funding for new social housing has been reallocated to “affordable” housing, thousands of social homes have been converted into more expensive properties.

The Grenfell disaster forced ministers to rethink their approach, with Sajid Javid, then the communities secretary, admitting the Tories had "failed" on housing. The government has commissioned a review of the social housing sector, which is yet to report.

Labour said the latest figures showed the government was still not investing enough in social housing.

UK Housing Crisis: in pictures Show all 8 1 /8 UK Housing Crisis: in pictures UK Housing Crisis: in pictures Members of ‘generation rent’, as the younger generation is often known, are finding it far more difficult to get on the housing market than previous generations PA UK Housing Crisis: in pictures Then chancellor George Osborne visits a Help to Buy housing development in Lewisham in 2014. Osborne had announced the Help to Buy scheme in the 2013 budget as a means of helping first-time buyers on to the housing market PA Archive/PA Images UK Housing Crisis: in pictures In February 2017, then communities and local government secretary Sajid Javid issued a government white paper on housing. Introducing it in the Commons, he stated ‘our housing market is broken’ and that ‘the idea of owning or renting a safe, secure place of your own is, for many, a distant dream’ PA UK Housing Crisis: in pictures Residents of Fitzroy Road in Primrose Hill have demonstrated how urban areas might be built up without using extra land. 12 homeowners along the street all agreed to extend their house upwards by 1 floor. The government recently held a consultation on the revised National Planning Policy Framework, which, if approved, will support building above homes, shops and offices Google Earth UK Housing Crisis: in pictures Social Bite, a charity in Scotland, is creating a small housing community for the homeless. Up to 20 people will be housed for 12-18 months, with the charity’s focus being on transitioning the residents into permanent housing and employment AFP/Getty UK Housing Crisis: in pictures A homeless man was found dead yards from Parliament in February. His death was taken by many, including Labour leader Jeremy Corbyn, to be symbolic of the government’s poor record on housing. PA UK Housing Crisis: in pictures Emergency homeless shelters in London had to be opened numerous times throughout the past winter to house those unable to find a room in an ordinary shelter or hostel Getty UK Housing Crisis: in pictures Carillion, the UK’s second largest construction company, entered liquidation early this year. It held numerous government construction and maintenance contracts, for many of which the future is still uncertain AFP/Getty

John Healey, the shadow housing secretary, said: “A year since Theresa May admitted that the Conservatives haven’t given enough attention to social housing, it’s clear ministers are still not building the homes the country needs.

“After eight years of failure on housing, the Conservatives should back Labour’s long-term plan for a million new genuinely affordable homes.”

It comes amid reports that Philip Hammond, the Chancellor, has warned his cabinet colleagues that the government’s NHS cash injection, announced this week, means there is no money left for investing in other areas – including housing.

Senior ministers were said to have been told they would not be receiving additional funding from the Treasury, despite growing calls for investment in areas such as housing.

Dominic Raab, the housing minister, said: “It’s good news to see affordable housing starts and completions rising.