The Chancellor pledged to increase housing supply in today’s Budget.

He announced a £150m fund, available to help self-build and said the Help to Buy equity loan scheme would be extended to 2020.

This follows the announcement at the weekend that a new garden city to be built at Ebbsfleet.

John Penn, head of mortgage proposition at Intelliflo, said: “The Chancellor’s announcement to increase housing supply is a much needed step for the recovery of the economy.

“While this weekend’s decision to extend Help to Buy is good news for the mortgage market, the resulting increase in demand for property is pushing up prices. Help to Buy has boosted consumer confidence and, as a result, the housing market has been revived. However, housing supply is failing to meet this new demand. This is particularly true for London and the South East, where property prices have soared exponentially because of the housing shortage.

“Property ownership is unaffordable for an increasing number of people. A fundamental element to help solve this issue is to build more houses, and the Chancellor’s announcement today will go some way towards addressing that.”