Government housing policy has come under renewed attack following yesterday’s about-turn on the introduction of Home Information Packs.

A National Audit Office report published today criticises the Department for Communities and Local Government for directing resources inefficiently in the Thames Gateway, one of its key growth areas.

The report acknowledges the government’s role in helping deliver 24,000 homes in the Gateway between 2001 and 2005 as well as job growth of 6% - over twice the national average.

The development programme will involve £672m of state funding until 2008.

‘But the complexity of the decision-making and delivery chains makes it difficult for potential investors, developers and government itself to understand the programme and integrate investments as a whole,’ the report says.

The report piles more pressure on the government to resolve the problems of housing supply and affordability after its decision this week to postpone the introduction of HIPs until August.