CO-LIVING, micro homes and granny flats are the most popular solutions to the "housing crisis", according to a study by the Federation of Master Builders.

The construction trade association asked 2,000 home owners across the country if there was a housing shortage and, if so, how best to address this.

Two-third of people (66 per cent) believed there was a lack of homes. Of those, one-third (33 per cent) thought building more co-living developments - with small private studios and shared spaces - was the answer.

Creating more micro homes - smaller than 37 square metres - in towns and cities was the favoured solution of 31 per cent of people.

The same number suggested building more granny flats, which which would see more elderly people moving out of their properties and living alongside children or grandchildren in self-contained home extensions.

Constructing new homes on greenbelt land was the least desirable option, with just 17 per cent seeing it as the remedy.

Other suggestions included excavating or converting more basements underneath existing homes.

Brian Berry, chief executive of the FMB, said creating more micro homes and co-living projects would both "increase density in urban areas where demand is particularly high".

He said: "While these solutions are food for thought, if we want to solve the housing crisis we need to reduce barriers to small, local building firms.

"Recent research from the FMB shows the lack of small sites and difficulties hiring skilled tradespeople are limiting the amount of homes these firms can build."