CALLS have been made for a ban on property developers building 'tiny' homes with inadequate storage space.

Prime Minister Theresa May has warned the current lack of universal standards was encouraging a 'race to the bottom' among developers.

And she is now calling for the introduction of mandatory design regulations which set out clear national standards for new-build homes.

Speaking at the Chartered Institute of Housing’s conference, Theresa May said: “I cannot accept a system in which owners and tenants are forced to accept tiny homes with inadequate storage.

“Where developers feel the need to fill show homes with deceptively small furniture and where the lack of universal standards encourages a race to the bottom.”

A ‘nationally described space standard’, which sets out detailed guidance on the minimum size of new homes, was introduced in 2015.

But the standard is not mandatory and not all local authorities insist on it being adhered to as a condition of granting planning permission.

As a result, Zoopla reports some developers have been reducing the size of both properties and individual rooms in order to squeeze in as many units as possible on to a plot of land.

It has been warned the situation had led to an uneven playing field with different rules in different parts of the country leaving buyers and tenants facing a 'postcode lottery'.

The move is good news for people who want to purchase a new-build home as it should ensure developers meet minimum standards on space and design.

People using the Government’s Help to Buy equity loan scheme will be particular beneficiaries as they are limited to purchasing a new build property under the terms of the scheme.

But experts have also warned the move could lead to higher property prices, as if developers find they are not able to build as many units on plots of land as they had previously anticipated, they are likely to pass on this cost to buyers.

Given the length of time between when planning permission is granted and when new homes become available, it could also be some time before any change in the rules benefit consumers.