The three-part package is part of the government's attempt to buoy the ailing housing market.
Along with the cash injection, the new measures will also aim to help first-time buyers enter the market, and support vulnerable families at risk from repossession.
The new package comprises:
• A boost in spending power for affordable housing schemes. The government says it will bring forward funding for social housing from existing budgets, delivering more social homes sooner. Local authorities who continue to directly manage their stock will be able to apply for this grant to build social housing, alongside registered social landlords.
• Mortgage Rescue: for those most affected by the international credit crunch.
• HomeBuy Direct: a new shared-equity scheme which will help more first-time buyers into affordable homeownership. HomeBuy Direct will give eligible first-time buyers keen to own a place of their own the chance to buy newly built properties.
Full details of the funding package will be unveiled later today (2 September).