The funding, part of a new £23bn National Productivity Investment Fund, will be used to support construction of up to 100,000 new homes in areas "where they are needed most".
In addition, £1.4bn will be allocated towards delivering 40,000 new 'affordable' homes, while another £1.7bn is being provided for building housing on public sector land.
In his speech, the Chancellor said: "This package means that over the course of this Parliament, the government expects to more than double, in real terms, annual capital spending on housing.
"Coupled with our resolve to tackle the long term challenges of land supply.
"This commitment to housing delivery represents a step-change in our ambition to increase the supply of homes for sale and for rent, to deliver a housing market that works for everyone."
-- Advertisement --
The Chancellor also revealed details to invest over £1 billion in the UK's transport infrastructure. £1.1bn will be allocated upgrading local roads/public transport, while £220m will be used to tackle road safety and congestion. A further £27m is being invested in developing a new expressway connecting Oxford and Cambridge.
Alan Mackenzie, Chairman of the Asphalt Industry Alliance (AIA), welcomed the announcement.
He said: "We are reassured that the Chancellor has recognised the importance of investment in road infrastructure to stimulate productivity and growth.
"The devil is, of course, in the detail. Long term underfunding means that the local road network continues to deteriorate at a faster rate than it can be repaired. We hope the decline in maintenance funding experienced by local highways teams will be addressed by real and measurable increases."
Michael Thirkettle, Chief Executive of industry consultancy McBains Cooper, welcomed the Government's commitment towards spending on infrastructure. However, he said he was disappointed there was no announcements on streamlining the planning process or investing in construction training/apprenticeships.
"For years successive governments have announced ambitious house building targets which are never met," he said.
"We are disappointed that there was no announcement to streamline the planning process or free up land on the greenbelt – much of which is derelict land rather than areas of beauty – as that would also help the shortage of land.
"We were also disappointed not to see further investments in training and apprenticeships in the UK construction industry, as we will need to train and re-train UK people in readiness for any restrictions in the supply of skilled foreign workers following Brexit."
(LM/MH)
