Chancellor George Osborne is due to set out £7bn of Government spending on a new housebuilding programme in today’s Autumn Statement.
The Chancellor will detail £20bn of cuts to Government departments and £12bn from the welfare bill.
But he will also pledge nearly £7bn as part of a package that will include building over 400,000 “affordable homes”, the BBC reports.
The Treasury is describing the plan as “the biggest affordable housebuilding programme since the 1970s”.
It will include £2.3bn paid to developers to build “starter homes” for first-time buyers who will get a 20 per cent discount on property worth up to £450,000 in London and £250,000 outside the capital.
In addition, £4bn will be spent on 135,000 Help to Buy shared ownership homes for households earning less than £80,000 or less than £90,000 in London.
The Government will also spend £200m on 10,000 new homes for people to live in for up to five years at reduced rents while they save for a deposit. They will have “first right” to buy the home.
Around 8,000 specialist homes for older people and those with disabilities will be built with £400m.
Osborne is also due to announce details of a tax avoidance crackdown which he says will raise £5bn.
The Chancellor is expected to address his controversial plans to cut £4.4bn from working tax credits. The plans were rejected by the House of Lords last month.