George Osborne's pledge to reduce social rents could negatively impact on new home delivery, experts have warned.

Earlier this week, the chancellor of the Exchequer announced that social rents would come down by one per cent a year for four years from April 2016.

However, the Office for Budget Responsibility (OBR) believes this will "directly reduce social landlords' rental income, and therefore their financing for, and returns to, investing in new house building".

The OBR has therefore reduced its forecast for residential investment in both the private and affordable markets.

Housing associations in England built approximately 37,000 affordable homes during 2013-14, but the figure is likely to fall by about 4,000 by 2019-20.

This means around 14,000 fewer affordable properties will be created during the coming five years.

Speaking to parliament during his Budget announcement, the chancellor described the increase in social housing rents since 2010 as "staggering", as they went up by 20 per cent throughout this period.

Mr Osborne therefore pledged to ensure rents paid in the social housing sector are reduced rather than frozen.

He described this as a "welcome cut" for tenants who pay rent, adding that housing associations and other social landlords "will be able to play their part and deliver the efficiency savings needed".