With millions of people locked out of the housing market, Government plans to build an extra 20,000 affordable new homes over the next two years has been warmly received by housing professionals.

The Chartered Institute of Housing (CIH) expects the cash injection of £1.5 billion to produce 13,500 rented homes and 6,500 low cost homes, as well as unblocking 10,000 private homes affected by the recession and credit crunch.

The proposed areas of reform could mark a significant watershed for delivering changes to a housing market which is failing millions of people. Proposals such as allowing Councils to use their rent income to build homes, creating more opportunities for a greater number of people to access social housing, and clamping down on sub-letting fraud are all major steps to the creation of a fairer society.

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CIH has consistently argued that there needs to be new and radical approaches to housing, which embrace issues such as tax, how housing is allocated, creating a level playing field for renting and addressing waiting lists NHS-style. And key to all of this is a shift away from our cultural fixation with homeownership and regarding housing as an investment, rather than a sustainable home.

CIH Chief Executive Sarah Webb said: "We warmly welcome the proposals, both in terms of the new affordable homes they create, but also the commitment to reform key areas of the housing market which create unfairness.

"Whilst many people are happy and benefit from the current housing system, we all have to recognise that for millions of people there are virtually no housing options available to them any more. And without serious and sustained changes the future remains bleak. We look forward to Government continuing to take bold actions, including giving housing waiting lists the same sustained attention that the NHS has received in recent years.

"We have been impressed by the new ministerial team responsible for housing. They've listened to housing professionals, considered how we think the system could be improved and acted at short notice to create homes and support jobs. We will do all we can to make sure people benefit from these proposals."

(CD/JM)