The support is expected to come in the form of loan guarantees for housing associations and developers, and is part of a wider £50 billion economic stimulus package first outlined in July.
Osborne also revealed this weekend that the Government plans to re-write planning rules to allow development on Green Belt in its raft of measures to speed up growth this autumn.
Osborne told BBC ‘s Andrew Marr Show that Government would encourage councils to allow developers to build on the Green Belt if an equivalent area of land elsewhere was redesignated.
“I think we can speed up planning. It is absolutely ludicrous that it takes years to get planning decisions in this country. This country, in the current economic environment, cannot afford to wait years for development,” he said.
The new Infrastructure (Financial Assistance) Bill, expected to be introduced this week, will use government guarantees and access to low interest rates to underwrite stalled major projects.
Mike Leonard, Director of the Modern Masonry Alliance, said: "Those of us who continue to campaign with passion to Get Britain Building to create Jobs and Growth eagerly await this well overdue announcement.
"We hope that the announcement offers real money for new public rented homes rather than empty unattractive promises that have consistently failed to deliver."
