40,000 new homes on their way – that was a good start to The Chancellor’s Autumn Statement.

The Government has, again, increased its drive for more affordable housing to help to address what he described as a chronic shortage.

The Chancellor echoed the pledge by Theresa May, the Prime Minister, to ensure the economy “works for everyone.”

Philip Hammond said that the Government had made great efforts but now must go even further, announcing a further £1.4bn funding injection to help thousands more families to buy a home.

The Government says that 40,000 new homes will be built as a result of the funding injection, which, with the Help to Buy Equity Loan Scheme and the Help to Buy ISA, will be used to help first-time buyers, sharing owners who wish to move on.

He said that they will abandon the rigid framework set by the current Affordable Homes Programme, with the £4.3bn of current and £1.4bn of additional funding allocated “flexibly” between existing shared ownership and affordable rent schemes.

Previous plans indicated that 88pc of funds would be used to build at least 135,000 homes for shared ownership, which are targeted at families with incomes of £80,000 or less, or £90,000 in London.

Around 10,000 homes were expected to be built under the Rent to Buy scheme, where prospective buyers pay a discounted rent for five years while saving for a deposit.

Allocations will now depend on demand from local authorities and housebuilders.

On a separate note, The Chancellor announced that he would widen the Right to Buy scheme to Housing Association tenants.

Vince Cable welcomed the greater investment in affordable homes, but said that to meet the Government’s house building targets Mr Hammond would have look beyond private developers and start investing in the public sector. “During out time in coalition the housing supply situation was appalling,” Mr Cable said.

“One area where they have freedom for movement would be to let public sector housing flourish. It’s basically collapsed to zero. If public and housing associations were allowed to borrow in order to build, letting the public sector take off where the private sector won’t invest, that would make a real difference.”

He added that “fiddling around” with small incentives for the private sector would fail to meet targets to build 1 million new homes by 2020.