In his Mansion House speech to be delivered today, the Chancellor will announce planning reforms which will favour developers prepared to build on brownfield sites, according to the FT.
Funding from the Treasury will be used to back the scheme in London which is to be matched by Mayor of London Boris Johnson with money from City Hall.
The scheme is expected to be extended to areas across the UK.
Tackling the supply-side issues prevalent in the housing market made its way onto the Queens’ speech last week.
Her Majesty said planning law needed to be reformed in order to improve economic competiveness.
As well as the support for the regeneration of brownfield sites the government is expected to further reform the ‘change of use’ rules which have already been simplied to make it easier to convert commercial permisies into residential units.