The number of homes built in the year to June has increased by 6% to 139,030, the latest Government figures reveal.
The total is still significantly lower than the 250,000 per year that housing charity Shelter and other groups claim is necessary to meet the shortage of homes.
The latest house building data shows that 144,280 homes were started in the year to June 2016, a rise of 2% on the previous year.
Shelter director of communications, policy and campaigns Roger Harding says: “Despite the recent good news, it’s clear from today’s figures that as a country we’re still falling far short of building the number of homes we need.
“Shelter’s own recent research shows that, without significant reform to the housebuilding market, the government is projected to miss its target of a million homes by 2020 by over a quarter.
“Theresa May now has a real chance to turn things around and return hope to all those being left behind by our housing shortage, but only through committing to measures that can reform house-building for the long term.
“This includes using record-low interest rates to invest in a new generation of genuinely affordable homes to rent and buy, and helping our struggling small builders access the land and finance they need to build.”
