Speaking at the 'Housing Market Intelligence' conference in London where she addressed the Home Builders Federation, Beckett acknowledged that housing was one of the sectors hardest hit by the credit crunch and said the government was aware of the scale of the problem.

She added that the government was committed to supporting the industry and to listening to house builders concerns, and that she was looking to develop a 'progressive' relationship with the housing industry.

She said:
"No one in government is going to be Pollyannaish about this. "No-one underestimates these very serious concerns. And no-one is complacent about the scale of the problem facing all of us - and particularly facing you."

She went on to say: “I am determined that we will not just hang back and respond to the changing circumstance, but show real leadership.”

She pointed to the measures the government has taken including its homebuy schemes, the stamp duty holiday, providing funding for housing associations to buy homes from developers, and greater grant flexibility for the Housing Corporation.

Beckett added that although reduced demand from the private sector was likely to remain weak for some time, it could be offset by increased development in social housing, in which the government plans to invest £400m over the next few years. The government is also considering reducing the risk of new developments by bringing forward public sector land for development.

Home Builders Federation executive chairman Stewart Baseley said the industry was at a "crossroads'' in terms of housing delivery.

Baseley welcomed Beckett as a 'politician with a proven political CV who commands respect' - just the sort of person, he said, the industry needed in the current climate. He went on to welcome the 'bold and decisive' Government action in recent days but stated that more needed to be done to assist the housing market, central to a wider economic recovery.

These included: 

·action to ensure banks starts lending again

·further interest rate cuts

·facilitation of the transfer of homes from the private to the public sector

· action to protect apprentices, so vital for housing delivery in the future