"It won’t be quick or easy, but as Prime Minister I am going to make it my mission to solve this problem."
May said this would take the Government’s total affordable housing budget to almost £9 billion.
She continued: "We will encourage councils as well as housing associations to bid for this money and provide certainty over future rent levels. And in those parts of the country where the need is greatest, allow homes to be built for social rent, well below market level.
"Getting government back into the business of building houses. A new generation of council houses to help fix our broken housing market.
"So whether you’re trying to buy your own home, renting privately and looking for more security, or have been waiting for years on a council list, help is on the way.
"It won’t be quick or easy, but as Prime Minister I am going to make it my mission to solve this problem. I will take personal charge of the government’s response, and make the British Dream a reality by reigniting home ownership in Britain once again."
Andy Sommerville, Director of Search Acumen, commented: “Our country needs to embark on the greatest housing boom the UK has witnessed in a century. For decades, UK governments have neglected the critical issue of our nation’s housing shortfall and as a result we estimate by 2022 the UK will be short of a million homes.
“Theresa May’s pledge to invest an extra £2bn in affordable housing is the first building block to making up for years of under supply and we can only hope that this is not simply another empty promise to fix our broken housing market. Now that our leaders share the industry’s sense of urgency, we must act to build more homes and we must act quickly. The gulf between supply and demand is widening each day. For the property and construction industry, this is the cue for Britain to start building.”
Charles McDowell, Aldermore’s Commercial Director, Mortgages, added: “Further to today’s announcement that the Government will provide an additional £2 billion for affordable housing, we are glad that the Government continues to have housing on its agenda.
“The Government already announced earlier this week that it will extend the Help to Buy equity scheme with an injection of £10 billion to support demand, so it is encouraging that it is also starting to address the supply of housing in the UK.
“It is a particularly difficult time for first time buyers due to demand significantly outmatching the supply of homes, and the affordability ratio of housing doubling since 1997. Our latest quarterly First Time Buyer Index shows that over a quarter (26%) of prospective first time buyers want to see the Government build more houses, and over one in three (34%) believe it could take them five or more years to get on the property ladder.
“We believe more needs to be done to increase house building, so it is promising to see that the Government has assured developers that land will be available for building. It is time to relax planning laws and selectively build on Green Belt land so that we are not left with a mismatched density in urban areas which then puts additional pressure on housing, and property prices and infrastructure within affected areas.
“When we talk about providing enough housing however, it is important not to focus on house building alone. There are a number of infrastructure considerations that need to be made alongside planning proposals. As well as homes, people need schools, transport, other services and amenities. Policymakers need to stop considering each issue as a standalone problem and take a holistic perspective.”
