The government has announced plans to help young people get on the property ladder with a new "rent to buy" scheme.
Communities secretary Eric Pickles said £400 million of cheap loans would be given to housing associations and social landlords to build an estimated 10,000 new homes - mostly one- and two-bedroom flats.
But as condition of receiving the money, these properties will have to be rented out at no more than 80% of local market rates for at least seven years, at which point tenants will be able to purchase their homes.
Pickles said: "Both house building and the number of first-time buyers are now at their highest rate since 2007. But there is more to do.
"As part of our wider housing programme, this new scheme will help increase the provision of low-cost rented accommodation and provide a springboard for young people to upgrade to home ownership down the line."
But Matt Hutchinson, director of flatshare website SpareRoom.co.uk, said the plans did not go far enough.
"In theory, the government's rent to buy scheme is a good idea," he said. "The reality, however, is that even 10,000 homes won't scratch the surface of a chronic supply problem that is severely impacting renters hoping to get onto the property ladder - particularly in London."
Hutchison added: "Announcing a new policy to help-first time buyers is a handy short-term win for the government, especially with an election looming, but we need to fix the housing crisis for everyone, not just a lucky few."
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