As part of the Deputy Prime Minister, John Prescotts plan to drive forward thriving and sustainable communities. £5 billion has been budgeted to create more affordable housing. Of this, some £1 billion will be spent on homes for key workers, £300 million to encourage modern build housing, £500 million for deserted and rundown housing areas in the North and Midlands, £2.8 billion to improve social housing, and finally £201 million will be spent on improving the local environment.

Mr Prescott said: "A step change is essential to tackle the challenges of a rapidly changing population, the needs of the economy, serious housing shortages in London and the South East and the impact of housing abandonment in the North and midlands."