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By Becky Morton
Political reporter
Sir Keir Starmer has accused the prime minister of overseeing a "collapse" in housebuilding.
The Labour leader said Rishi Sunak was "shuttering the dream" of those who "desperately" want to own a home.
But Mr Sunak defended the government's record, saying housing supply was up 10% in the last year.
The government is set to miss its target of building 300,000 new homes a year in England by the mid-2020s, a figure it has never achieved.
Last year Mr Sunak was accused of watering down local housing targets, following a rebellion by some Conservative MPs.
The government has said it remains committed to the 300,000 figure but has given councils more flexibility in meeting centrally-set targets.
During Prime Minister's Questions, Sir Keir said "housebuilding has collapsed" since Mr Sunak "crumbled to his backbenches and scrapped mandatory targets".
He said the prime minister's "failure" was "shuttering the dream of those who desperately want to own their own home".
"How can they ever look the British people in the eye again, and claim to be the party of homeownership?" he asked.
Mr Sunak said the government had delivered almost record numbers of new homes in each of the past three years, while the number of first-time buyers was at a 20-year high.
"He talks about targets, so let's be clear, I promised to put local people in control of new housing, I delivered on that policy within weeks of becoming prime minister," he said.
Labour has sought to make housing central to its pitch to voters ahead of the next general election, which is expected next year.