Communities secretary Greg Clark has announced a £26 million fund for house builders to build starter homes for first-time buyers.
The fund will support architects, developers, councils, housing associations and small builders to build properties that will increase the quality of design as the government looks to deliver on its pledge to build 200,000 starter homes by 2020.
The funding will be used to acquire brownfield sites to provide land for starter homes. Money from the sales of these sites will go back to the government thus securing value for the taxpayer.
In a further move to support aspiring homeowners the government is also making available up to £10 million for local authorities to prepare more brownfield land for development of starter homes.
Clark said: "As a one nation government we are on the side of hard-working people and that is why we are committed to delivering 200,000 starter homes by the end of this Parliament, providing a real boost to aspiring young first-time buyers.
"This competitive fund will build homes that will clearly show the wide range of new properties that will be available for first-time buyers as they take their first step on the housing ladder.
"We are also helping bring back into use more brownfield land for development, keeping the country building and delivering the homes our communities need."
Housing minister Brandon Lewis said: "Helping young people achieve their dream of home ownership is a real priority for this government. We've already helped more than 100,000 households buy a home through our Help to Buy scheme and starter homes are another game-changer.
"This fund will help kick-start that change and show young people across the country the quality they can expect when they buy a starter home. It's further proof that this government's long-term economic is on track, supporting the aspirations of hard-working people everywhere."
Andy Rose, chief executive of the Homes and Communities Agency, said: "The HCA is ready to support the government in delivering this key priority, which aims to set the standard for starter homes. By using our land and development expertise, we will help even more first-time buyers into affordable home ownership.
"We look forward to working with our key delivery partners including councils, developers, housing associations, small builders and architects in taking this forward, through the identification and purchase of land suitable for exemplar starter home sites."