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Hazel Blears, communities secretary, unveiled measures that include:

* Offering 10,000 first-time buyers the chance to get onto the property ladder through a new £300m shared equity scheme. Buyers will be offered an equity loan of up to 30 per cent of the value, co-funded by the government and the developer, free of charge for five years. Any first-time buyers whose household income is under £60,000 will be able to apply.

* Supporting up to 6000 of the most vulnerable homeowners facing repossession to remain in their home through a £200m mortgage rescue scheme.

* A £400m boost in spending power for social housing providers, including registered social landlords and councils, to deliver 5500 more social houses in the next 18 months by bringing funding forward.

* Working with regional development agencies to support the most critical regeneration schemes with the most potential to transform their communities.

The department for work and pensions also announced it would be reforming income support for mortgage interest by shortening the waiting period before the benefit is paid from 39 weeks to 13 weeks for new working age claims from April 2009.

The capital limit for new working age claims will also be increased to £175,000 from April 2009.

Alistair Darling, chancellor, also announced stamp duty land tax will not apply to purchases of residential property of £175,000 or less between 3 September 2008 and 3 September 2009.