The creation of Homes England has been welcomed by small business chiefs.

The Government's housing delivery agency, the Homes and Communities Agency, has changed its name to become Homes England.

The Government said in the November budget that the relaunched agency - which will lose powers of social housing regulation - will begin to intervene more actively to buy land for housing.

Responding to yesterday's launch of Homes England, Mike Cherry, Federation of Small Businesses national chairman, said: "The creation of Homes England is a good move and one that should help provide a clear and co-ordinated strategy for tackling the country's housing crisis and help implement the raft of good measures outlined in the housing White Paper.

"Central to this strategy needs to be a strong emphasis on supporting smaller housebuilders and tackling the many barriers currently stopping them from building more homes.

"These homebuilders can drive innovation, create jobs and stimulate growth if they are given the keys to do so.

"Extending the Home Building Fund in last year's budget sent a clear signal that the Government recognises the potential small and local housebuilders have in supporting housing demand.

"I hope that Homes England in its first corporate plan includes specific activity to support smaller housebuilders build the houses so desperately needed.

"Homes England's success will depend on its ability to help smaller housebuilders build the homes everyone needs - that's what we'll measure them on."

Picture caption: Mike Cherry, FSB national chairman.