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The government will provide £150m to help self-builders in a "right to build" scheme, and give £500m to small house building firms.
Small and medium-sized building firms are struggling to find land where they can build homes, research showed on Tuesday, with a lack of available sites preventing the creation of much-needed new homes in England.
Building firms McAlpine and Wates won contracts from the Department for Education to build or renovate schools in the north of England and Coventry.
Building firms are finding financing a problem for several reasons.
Building firms have shared in the profits bonanza.
Migrants own the shops, restaurants and building firms, and man the police and army.
Bulgarian building firms are well placed to win contracts in Yugoslavia.
Others owe their political debts to building firms, farmers, postal workers and railwaymen.
The government hopes that the scheme will spur building firms to cut construction costs.
They also argue that the crisis will undermine building firms' efforts to emerge from recession.
"Building firms must invest in the east as well," says Mr Stiepelmann.
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