Councils in England are to be offered extra money for every newly-built home, as part of a government programme aimed at easing housing shortages.

Under the New Homes Bonus scheme the government will match the council tax raised on each new house for six years.

Housing Minister Grant Shapps said action was needed as home building was at its lowest level since the 1920s.

Shadow housing minister John Healey described the announcement as a con and said the scheme would cost billions.

Mr Shapps said: "We will not tell communities how or where to build.

"But the New Homes Bonus will ensure that those communities that go for growth reap the benefits of development, not just the costs.

There were 120,000 homes built last year and there are 4.5m people in England who are on council waiting lists.

Councils are forced to do those things by the government to ensure that they get value for money. Until councils no longer have to sell homes to tenants will they ever solve the problem. No point building homes if people just end up buying them for a discount.