Sajid Javid calls for 'giant leap' in new homes being built in challenge to Philip Hammond

Sajid Javid has laid down a challenge to Philip Hammond, the Chancellor, as he called for a "giant leap" in numbers of new homes being built.

The Communities secretary said the lack of new homes being built was a “big problem and we have to think big” to tackle the crisis.

A major new package for house-building will be at the heart of the Budget next week.

Mr Javid has upped the pressure in recent weeks for Mr Hammond to spend billions of public money on new homes.

His words came as new figures that show 217,000 new homes were built over the past year.

In a rare Tweet, Gavin Barwell, the Prime Minister's chief of staff and a former housing minister, hailed the figure as "real progress but more to do".

In his speech Mr Javid said far more had to be done and he wanted to see a “government of deeds, not words”.

He said: “The figures that have been released today show that we have started turning things around. But they are only a small step in the right direction.

“What we need now is a giant leap. You wouldn’t know it if you listened to some people.”

Referring to the Budget next week, Mr Javid said: "In next week’s Budget you’ll see just how seriously we take this challenge, just how hard we’re willing to fight to get Britain building.”

Likening the housing crisis to the challenge facing Britain in the Second World War, adding that Britain would rise to the challenge and build more homes.

Mr Javid said: “Faced with the crisis of the Second World War, Churchill demanded ‘action this day’ so the country could rise to the challenge.

“And, faced with an unprecedented housing crisis, that’s what you’re going to get from this government.

“Real action, day after day, week after week, to give this country a housing market that works for everyone."

Mr Javid set out a multi-pronged policy assault on the housing crisis including allowing the Homes and Communities Agency to make more public land available for new homes.

Private housebuilders will also be required to build homes more quickly while the Government will introduce measures to train up more construction workers.

Developers will also be told to build on land they own – or lose it – in an end to “unjustifiable land banking”.

Mr Javid said: “It’s a time of national shortage and in this kind of time British people will not look kindly on anyone who hoards land and speculates on its value, rather than freeing it up for the homes our children and grandchildren need.”

Baby boomers who havde paid off their own mortgages should not be allowed to get in the way of the construction of homes for a younger generation “crying out for help with housing”.

Mr Javid said: “They don't want the world handed to them on a plate. They want simple fairness, moral justice, the opportunity to play by the same rules enjoyed by those who came before them.

"Without affordable, secure, safe housing we risk creating a rootless generation, drifting from one short-term tenancy to the next, never staying long enough to play a role in their community."

The comments come two weeks after Mr Javid called for Mr Hammond to borrow more to pay for more homes.

Mr Javid’s remarks came hours after it Mr Hammond announced new powers to fund house building.

Housing associations will be reclassified as private bodies allowing their £70billion debt to be removed from the government's balance sheet, the Government said.

Government sources said Mr Hammond, Mrs May and Mr Sajid were agreed on a bid to tackle the housing crisis. 

The plans which are set to be unveiled next week in the Budget will be a series of measures to tackle the housing crisis.

Mr Hammond said there was “no silver bullet” to fixing the housing crisis as he appeared to strike a more downbeat tone than Mrs May.