Government wants non public sector land for housing, says Shapps

To meet the land release target, the Government is working with organisations including the BBC, Network Rail and the Royal Mail to identify land and buildings that could potentially be released for housing redevelopment, said Shapps, in a speech to councils and the housing sector.

The Government is on course to meet its target, according to Shapps, who said that the Government had already identified enough land to support 80,000 new homes.

The Government has also announced £432 million in cash bonuses to reward councils that have delivered new homes or have brought empty properties back into use, including a £21 million premium for new affordable homes. The bonuses form the second instalment of the New Homes Bonus.

The New Buy Guarantee scheme, announced in the housing strategy last year, will be launched in March 2012, confirmed Shapps in his speech. Under the scheme the Government will provide indemnity for mortgages of up to 95% of the value of new houses, allowing lenders to offer larger mortgages without taking on all of the risk.

The scheme will be open to UK citizens buying new homes or flats of a value of up to £500,000 as their main home, whether they are first time buyers or not, the Government said.

In a shift of power devolving from Whitehall to councils, the Government has also announced the end of "tax on tenants". It is a £19 billion deal that will enable councils to keep the rents they collect and invest the money in their homes.