Housing Minister Brandon Lewis said this previously developed land could help pave the way for planning permissions on up to 200,000 new homes across the country.
To qualify for the funding, councils will need to consult on a local development order on the land they identify - making it easier and quicker for developers to get work started.
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The fund will help get local development orders on brownfield land with up to 100 bids each benefiting from up to £50,000 across this and next year.
Minister Lewis said: "By investing billions in our affordable housing programme, and launching schemes like Help to Buy, we’ve got Britain building, with housebuilding levels at their highest since 2007.
"But with enough brownfield land available for up to 200,000 homes we can do more. Today's fund will get local development orders in place on brownfield land across the country, paving the way for more to come forward in the future."
(CD/MH)
