Private developers are to build around 400,000 'affordable' new homes by 2020, according to Chancellor George Osbourne.

In his Spending Review and Autumn Statement, the Chancellor announced the housing budget is to be doubled to over £2 billion a year.

"First I am doubling the housing budget to £2bn a year and will deliver 400,000 new homes by the end of the decade," Mr Osbourne said.

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"That is the biggest house building programme since the 70's."

Other new measures include an extension of Hep to Buy with a special scheme for London.

Buyers in the capital with a 5% deposit will receive an interest-free loan worth up to 40% of the value of a newly-built home.

Further announcements included removing restrictions on shared ownership and reforming the planning system to deliver more homes.

A new 3% surcharge will also be implemented on stamp duty for buy-to-let properties and second homes from 2016.

It is estimated this will raise by approximately £1bn.

Local government spending, in cash terms, is to remain the same in 2020 as 2015.

(LM)