David Cameron has outlined plans to boost the “right to buy” council house scheme.
The prime minister made the announcement to increase discounts to encourage council tenants to buy their own homes.
He also announced a “build now pay later” scheme for developers which will allow them to pay for the land once the homes are sold.
The scheme could create 200,000 jobs and 100,000 homes. Cameron said, "We need to do everything we can to fire up the engine of the British economy,"
House-building fell to its lowest peacetime rate since 1924 under the last Labour government, Cameron said.
"The housing market isn't working. Why isn't working? Because of the debt crisis, the banks are bunged up with debt, so the banks aren't lending, the builders aren't building and the buyers can't buy because they can't get the mortgages that they need.
"So this government isn't just sitting back, we are rolling up our sleeves and saying right, we're going to make over government land to house-builders on the basis that they can build now and pay for the land when they sell the homes.”