In his speech the Prime Minister outlined his intention to raise the annual house building target for 2016 from 200,000 to 240,000 new homes a year. The draft legislation also seeks to speed up the planning process, encourage local authorities to expand development, and increase the take up of long-term fixed rate mortgages.

Brown said: “Putting affordable housing within the reach not just of the few, but the many, is vital both to meeting individual aspiration and a better future for our country.”

Rachel Hegson of the Department for Communities and Local Government said: “This target isn’t just a headline, it is a carefully worked out policy. Everyone is agreed we need to do more. It’s important to have an achievable target, but in a measured and sustainable way.”

Rob Thomas, senior policy advisor to the CML, said:”The issue is just as much about the consumer appetite for long term fixed rates as about how they are funded.”

The Prime Minister also wants to bring the British mortgage market in line with the US and the European Union by encouraging borrowers to take out more long-term fixed rate mortgages.

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A survey from the Council of Mortgage Lenders (CML) published this week, however, has revealed that, while fixed rate mortgages are extremely popular, most borrowers are currently opting for short-term fixed rates.

Almost nine out of 10 first-time buyers and three quarters of homemovers took out short-term fixed rate mortgages in May, a new record.

The Prime Minister is planning to change financial regulations to “help mortgage lenders finance more affordable 20 to 25 year fixed rate mortgages.”

However, industry experts are not convinced. Hamptons Mortgages technical director Jonathan Cornell said:”I think the Prime Minister flogging a dead horse. How many of us can guarantee that we will not divorce, split up, suffer bereavement, lose our job, or relocate abroad within the next 25 years?

“Government intervention in the financial services market has always been rather unsuccessful. I can’t see changes to regulation making the slightest bit of difference.”

Several lenders have reacted with more enthusiasm, and Nationwide has announced a new 25-year fixed rate mortgage charged at 6.39%, with a registration fee of £599.

Yorkshire Building Society is also preparing to launch a new long-term fixed rate mortgage within the next few weeks.

The Government measures were proposed in advance of the Queen’s speech and in anticipation of impending policy publications “in the interests of good and open government.”