The housing growth areas may have to spread into the Midlands following a U-turn by the East of England Regional Assembly.

Last Friday the assembly reversed its earlier approval of a plan for 478,000 new homes between 2001 and 2021 – just two days after the plans went out for consultation.

The decision came amid concerns, led by Tory members of the assembly, over the government’s provision to build the infrastructure needed in the region.

A statement from the assembly said: “The assembly deplores the government’s grossly inadequate funding of the transport infrastructure costs associated with the additional houses.”

The surprise move and a similar stance adopted by the South-east regional assembly has prompted the Chartered Institute of Housing to say that neighbouring regions may need to take some of the strain.

Sarah Davis, policy officer at CIH, said: “We don’t think there will be a huge knock-on effect for the North and North-west, but there may be for those regions bordering. It may well be that they’ll be in a position to pick up some of the growth.

“The other regions might see it as a benefit because if they market themselves as a place where planning and delivery can get through, it might encourage private sector growth.”