Speaking as an exhibition of the winning designs was unveiled this morning, Kelly said that housebuilders must view the initiative as an example of how to build more affordable homes that are well designed.
The exhibition features designs from architects as diverse as Urban Salon, PRP and Sheppard Robson.
'The winning projects have really pushed back the boundaries, producing innovative designs that maximise space and minimise environmental impact,' Kelly said.
'The challenge now is to build on this and bring the lessons learned from the competition to the heart of housebuilding. We need more decent affordable homes and there is no reason why they should not also be of a decent design.
We are committed to helping make this happen and will be working with local authorities, developers and other partners to realise this goal,' she added.
The exhibition is being held at the Building Centre on Store Street in London until the end of this week.