David Cameron will set out plans today for the Government directly to «commission» more than 10,000 new homes on publicly owned land.

Downing Street said it wanted to help smaller building companies that cannot begin construction on big schemes on publicly owned sites which have planning permission.

Mr Cameron said: “This Government was elected to deliver security and opportunity – whatever stage of life you’re at.

“Nothing is more important to achieving that than ensuring hard-working people can buy affordable homes.

“Today’s package signals a huge shift in government policy. Nothing like this has been done on this scale in three decades – government rolling its sleeves up and directly getting homes built.”

The new measures will be backed by a £1.2billion fund to decontaminate formerly industrial sites so they are more attractive for developers to build 30,000 ‘starter homes’ for younger people under 40 year old for at least a 20 per cent discount.

Mr Cameron added: “It shows we will do everything we can to get Britain building and let more people have the security that comes with a home of their own.”

The construction of the first wave of up to 13,000 directly commissioned homes – 40 per cent of which will be starter homes – will begin this year in Dover, Chichester, Gosport, Northstowe in Cambridgeshire and Old Oak Common in north west London.