The Government is launching a £2.3bn Housing Infrastructure Fund to deliver infrastructure for up to 100,000 new homes in areas of high demand, according to Chancellor Philip Hammond.
The Chancellor also announced an additional £3.15bn for 90,000 new houses in London.
Delivering the Autumn Statement today, Hammond said home ownership was still impossible for many.
The Government has also set aside an additional £1.4bn to deliver 40,000 affordable homes, Hammond said.
The cash will be split between rent to buy, shared ownership and affordable rent schemes, all part of the 2016-2021 Affordable Homes Programme.
The Government is also set to launch a housing white paper to address more housing issues.
Legal & General Housing Partnerships director Stephen Smith says: “The Chancellor’s pledge to add another £1.4bn into the housing market is desperately needed and will be welcomed by both the industry and hopeful first time buyers across the nation.
“This injection of capital is aimed at delivering 40,000 new affordable homes in England. Due to the serious shortage of properties, our country’s housing market has become increasingly selective and exclusive, pricing out many buyers who are unable to meet these overwhelming financial demands.”