An ambitious new strategy to tackle the housing shortage, boost the economy, create jobs and give people the opportunity to get on the housing ladder was announced by the Prime Minister and the Deputy Prime Minister.

The Prime Minister and Deputy Prime Minister said the Government has inherited a broken housing market and a devastating collapse in construction from the era of top down targets, but new plans will give the housing market a shot in the arm by boosting supply, easing financial pressures and helping with demand.

The action will be designed to drive up the level of housebuilding, ensure that there is help for new home owners and to boost consumer confidence.

The Strategy will break the current cycle in which lenders won't lend, builders can't build and buyers can't buy. The aim will be to make it easier for people to secure mortgages on new homes, help people get on the property ladder, address unfairness in social housing and ensure homes that have been left empty for years are lived in once again.

Supporting older people to live independently

The Strategy also focuses on the needs of older people and includes a deal to improve the quality and choice of housing available for older people, which aims to help them to stay independent for longer.

Nearly a third of all homes are occupied by the elderly, and nearly two thirds of the projected increase in the number of households over the next twenty years will be headed by someone aged 65 or over.

So a package of measures will help the elderly adapt their homes, or move into alternative housing, to meet their changing needs.

As part of this package the Government will work to develop simple and attractive financial products that help older home owners safely release equity that they can then use to maintain or adapt their homes.