The Financial Times has also reported that George Osborne will propose £2.5bn investment in infrastructure projects, with a significant amount allocated to housing. It said that a new mortgage guarantee scheme is also on the cards.
Longstanding tenants living in social housing in London could be given a boost with the Chancellor looking at extending the Right to Buy discount by £25,000 for homes in the capital, the London Evening Standard has speculated.
This would give a £100,000 discount for tenants who wished to purchase their own home and aims to cheer Londoners paying some of the highest housing costs in the UK.
The newspaper reported that just six sales were made using the Right to Buy scheme in the last year in the London borough of Hammersmith and Fulham.
BBC political editor Nick Robinson has reported that the government will expand the NewBuy scheme. Speculation from other sources suggests that this could be in the form of an extension of the scheme past the next election or a change in the terms to allow existing housing stock to be used in the programme.
The Times added that minsters have discussed the possibility of using the scheme to help homeowners out of negative equity.
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