The policy paper (28-page / 204KB PDF) sets out proposals for a major house building programme which will increase the construction rate each year until at least 300,000 houses are built each year.
This will be achieved using a number of measures to stimulate financial investment from the private sector and to free up local authorities and other housing providers to invest and increase the supply of land.
"The more government supports social housing construction, the more private finance it will be possible to draw into co-investment. Securing private finance is critical to the delivery of the programme Liberal Democrats aspire to, and we are supportive of approaches through which the long-term investment needs of pension funds and insurers can be met through housing," the paper says.
The policy also suggests increasing the finance available to housing associations by giving them the power to offer long-term, low interest rate mortgages on the properties they sell.
Initiatives to encourage development in the private rented sector include proposals to give local authorities more freedom to have policies on build-to-let in their development plans as well as to release public land suitable for build-to-let investment.
The paper considers a stronger 'use it or lose it' planning permission policy, requiring a certain amount of a development to be completed within a time limit. Currently the requirement is for the development to just be started within a time limit.
As well as plans to build more homes, the policy has visions to give tenants more "power and security" by making social landlords more accountable and giving the Social Housing Regulator a stronger role. It also promotes "more local control", including passing the control of 'right-to-buy' schemes to local authorities.
The paper emphasises that investing in housing will benefit the economy.
"Every £1 spent on housing construction results in £2.84 of economic activity, through the direct and indirect multiplier effects associated with construction firms purchasing goods and services, and construction sector wages and profits being spent across the whole economy," it says.
The policy will be voted on this week and, if voted through, will be adopted by next month.
