New homes have helped reduce water usage by 8.5 billion litres a year, saving households £120 each.

Research from the Home Builders Federation's 'Wat-er Save' report shows new builds use 96,000 litres of water a year, compared to 130,000 litres in older properties.

This equates to a saving of 3,300 Olympic-sized swimming pools' worth of water.

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The report attributes this to efficiency measures built into new homes, such as water-efficient shower heads and taps, dual-flush toilets, and modern appliances.

As a result, new build households' water bills are 27 per cent cheaper than those of older properties.

This efficiency has led to combined savings of more than 42 billion litres of water over the last five years, the equivalent of four days' worth of water flow through the River Thames.

Neil Jefferson, chief executive of the organisation, said: "Home builders have taken significant action to improve the water efficiency of new homes, positively contributing to the Government’s sustainability goals, while helping reduce household running costs and saving new build buyers money."

However, with increasing pressure on water resources due to climate change, population growth, and rising demand, the report highlights the important role of the home building industry and new build residents in reducing water consumption.

Stephanie Fox, head of water efficiency engagement at Waterwise, said: "If we want to grow the economy, tackling water scarcity must be made a priority across all organisations.

"Our UK Water Efficiency Strategy to 2030 calls for all new developments to be much more water-efficient, which is vital to achieving the UK's environmental ambitions and will help save homeowners money."

The report also outlines a future reduction in average water consumption as the country strives to meet the Government’s goal of reducing public water supply usage by 20 per cent by 2037.

Ed Lockhart, CEO of the Future Homes Hub, said: "The Environment Agency predicts a shortfall of nearly five billion litres of water per day, by 2050.

"The Water Ready report, published earlier this year by the Future Homes Hub, proposes the roadmap for how the Government can introduce higher standards for water efficiency over the next 10 years to ensure we can continue building homes sustainably at the scale needed."