The number of planning permissions granted for new homes in England rose by 4% in the first quarter of 2016, according to the latest housing pipeline report.

In the first three months of the year permissions were granted for 66,102 homes, which is a 4% rise on the previous year, as shown by the report from Glenigan and the House Builders Federation.

These figures mean that the moving yearly total has now recovered to levels near the pre-cash peak in the 12 months prior to March 2008, and is ahead of 2006 and 2007 levels, which suggests that house building can carry on meeting the high demand level for new homes.

While many of these permissions still have a long way to go before construction can begin, the figures do give a strong indication about future supply.

Ever since 2009 permissions have increased steadily, with actual housing supply also showing a marked increase over the last two years as more and more permissions have progressed to the stage where builders can commence with construction.

The report also shows that the last year has seen an increase of 66% in permissions granted since the 2009 recession, with numbers now just 0.3% down on their highest point at the start of 2008.

There is still a strong demand for new homes and the HBF estimates a shortfall of more than one billion homes in England, with a third of young people (3.35 million) living at home with their parents, while housing waiting lists are 1.24 million people long.

The demand for new homes continues to be driven by the Help to Buy equity loan scheme, while interest rates stay at an historic low.

In 2014/15 more than 180,000 new homes were added to the housing stock, which is a 22% increase on the year before, as house builders raised their output in response to the increase in demand for new homes.