In his Spending Review and Autumn Statement, the Chancellor announced the housing budget is to be doubled to over £2 billion a year.
"First I am doubling the housing budget to £2bn a year and will deliver 400,000 new homes by the end of the decade," Mr Osbourne said.
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"That is the biggest house building programme since the 70's."
Other new measures include an extension of Hep to Buy with a special scheme for London.
Buyers in the capital with a 5% deposit will receive an interest-free loan worth up to 40% of the value of a newly-built home.
Further announcements included removing restrictions on shared ownership and reforming the planning system to deliver more homes.
A new 3% surcharge will also be implemented on stamp duty for buy-to-let properties and second homes from 2016.
It is estimated this will raise by approximately £1bn.
Local government spending, in cash terms, is to remain the same in 2020 as 2015.
(LM)
