Stamp duty hikes for overseas buyers and investment in new homes in high-demand areas were among the main housing pledges announced in today's Budget.
Chancellor Rishi Sunak also announced what he described as the largest investment in affordable housing in a decade and further funding to remove unsafe cladding from flats in the wake of the Grenfell tragedy.
The government says money raised from this surcharge will help fund policies to reduce rough sleeping.
The Chancellor announced that £1.1bn of funding will be allocated from the Housing Infrastructure Fund to build up to 69,620 new homes in areas of 'high demand'.
These areas will include Manchester, south Sunderland and south Lancaster. A further £328m will be invested in housing projects in York, Harlow and north Warwickshire.
Mr Sunak pledged 'the largest cash investment in affordable housing in a decade', with £12.2bn set to be put towards a new 'multi-year affordable homes programme'.
The government will cut interest rates on lending for social housing by 1% and offer £1.15bn worth of discounted loans for local infrastructure projects, in an attempt to help councils build more homes.
Mr Sunak says that the government will spend an extra £1bn from the Building Safety Fund to remove unsafe cladding from residential buildings more than 18 metres high.
Despite much debate in the run-up to the Budget, the prospect of a so-called 'mansion tax' on high-value properties didn't come to fruition.
This morning, the Bank of England announced a reduction of the base rate from 0.75% to 0.25%, as it seeks to 'bolster the cash flows of businesses and households' amid the ongoing coronavirus outbreak.
It says it will make additional funding available to banks and building societies that increase lending, with small and medium-sized lenders given priority.
The government announced in February that first-time buyers could benefit from discounts of around £100,000 under the new First Homes scheme.
The government says First Homes will cut the cost of some new-build properties by a third.
The scheme, originally proposed in the Conservative manifesto, would allow first-time buyers to purchase a property with a 30% discount on market value.