The Government is expected to increase its estimate for the growth in households in England for the next 18 years because of changing lifestyles across the population.

A projection of 4.4 million new households from 1991 to 2016 was drawn up by the Department of the Environment under John Gummer in 1995. It is now thought that figure could be more than 1 million homes too low.

Statisticians involved in planning say that, while the overall number of people living in Britain is expected to remain relatively stable, a series of demographic shifts is expected to increase the number of new households.

They say new accommodation will be needed to cater for a rise in the number of young people setting up home, increases in the divorce rate, the number of people choosing to remain single, and the fact that many people are living longer.

A new figure of 5.5 million new homes is bound to cause controversy.