The nine consortia include Richard Rogers Partnership (RRP), Sheppard Robson, HTA Architects, Mackellar Architects and PCKO Architects.
The winners will be invited to design and build new homes with a construction cost of about £60,000 on one of 10 public-sector owned sites around the country.
Announcing the nine finalists, Prescott said: 'As well as enabling around 1,000 more families and first-time buyers to have a decent, affordable home of their own, the £60,000 house challenge is raising the bar for the quality of future developments everywhere.'
The final nine consortia include the following:
HTA Architects with Barratt Developments;
RRP with George Wimpey;
Mackellar Architects, Northern Edge, Urban Salon and Gross Max;
Sheppard Robson with Crest Nicholson;
PCKO Architects with Countryside Properties;
Broadway Malyan with Westbury Homes;
William Verry; and
Baily Garner with Geoffrey Osborne.