The Government has set out details to tackle the housing shortage by building 25,000 new homes using a £3bn Home Building Fund.
The fund, made up of money already set aside for housing, will provide short-term loans to businesses in an effort to encourage new homebuilders into the market.
The plans include spending a further £2bn on an accelerated construction scheme to make publicly owned “brownfield” land available for development and address the long-term housing shortage.
In addition, a plan for urban regeneration aims to develop derelict land and abandoned shopping centres into new communities and convert unused office buildings into homes.
The stimulus fund will help build 25,000 new homes by 2020 and up to 225,000 in the longer term.
A plan to use public land will enable the building of a further 15,000 in the same period.
The announcement by Chancellor Philip Hammond and Communities Secretary Sajid Javid comes on the second day of the Conservative Party’s annual conference.
“There has been a housing shortage in this country for decades, and the Government is determined to take action to tackle it,” Mr Hammond said.
“We’ll use all the tools at our disposal to accelerate house building and ensure that over time, housing becomes more affordable.”
Although the housing market has shown signs of cooling since the vote to leave the EU, a chronic shortage of properties keeps prices out of reach of many young and low-income people.
Mr Javid said: “We want to ensure everyone has a safe and secure place to live. That means we’ve got to build more homes.
“It is only by building more houses that we will alleviate the financial burden on those who are struggling to manage.”