The ACT needs a significant lift in home approvals and construction starts to meet its National Housing Accord target, Master Builders ACT says.

Australian Bureau of Statistics figures show 257 homes were approved in July, down 33.6 per cent from June but 17.4 per cent higher than July last year.

A total of 4166 homes were approved in the year to July, up 39.4 per cent on the previous 12 months.

However, Master Builders ACT says 7225 homes have been approved over the first two years of the Accord against a target of 8763, while 6455 homes have commenced against a target of 7361.

Under the Accord, the ACT has a five-year target of 21,030 new homes, equivalent to an average 4206 a year or 351 a month.

Master Builders ACT CEO Anna Neelagama said approvals needed to increase 36.5 per cent and commencements 21.6 per cent to reach the required pace.

“It is one thing to approve homes on paper. It is another to see them underway on the ground,” Ms Neelagama said.

She called for further planning reform, measures to improve workforce supply and reductions in the cost and complexity of delivering new housing.

News all day, every day at CityNewsQBN.com.au.