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The government has promised to put 拢1.5bn towards building affordable homes over the next two years.

In a statement to the House of Commons this afternoon, prime minister Gordon Brown said the government would 鈥渢arget investment鈥� to deliver 20,000 new affordable homes and a further 10,000 homes delivered through the private sector. Housing minister, John Healey hopes the plan will create 45,000 construction and related jobs over the period. This morning, business secretary Lord Mandelson said 拢500m of the cash would be transferred from other government departments, including transport and the Home Office.
The industry warmly welcomed the news. Ruth Davison, director at the National Housing Federation, said: 鈥淲ith up to 5 million people on waiting lists in England alone, we are facing an unprecedented housing crisis.

鈥淭oday鈥檚 pledge is great news for those on waiting lists 鈥� and housing associations who built more than 38,000 affordable homes last year stand ready to help deliver the housing our country needs.鈥�

Sarah Webb, chief executive of the Chartered Institute of Housing (CIH), said: "We warmly welcome today's proposals, both in terms of the new affordable homes they create, but also the commitment to reform key areas of the housing market which create unfairness.

"We have been impressed by the new ministerial team responsible for housing. They've listened to housing professionals, considered how we think the system could be improved and acted at short notice to create homes and support jobs. We will do all we can to make sure people benefit from these proposals."

The announcement was part of the Labour party鈥檚 draft election manifesto, 好色先生TV Britain鈥檚 Future, which aims to lead the country out of the recession. The document also promised a 拢150m innovation fund and to force young people who had been out of work for a year into work, training or work experience.

More details will follow.