New legislation will make one out of every five new dwellings constructed into a starter home.
A consultation has been launched on the plan, which will apply to all developments of ten or more residences and is being seen as a step towards creating 200,000 starter homes for first-time buyers aged under 40.
The plans also entail providing starter home eligibility to injured soldiers and their partners, while starter homes can only be resold to other first-time buyers for up to eight years, in order to prevent speculative buying.
Housing minister Brandon Lewis said: "Today's proposals mean starter homes will be built on hundreds of housebuilding sites across the country, encouraging private and affordable housing is built side by side in mixed communities."
The plans have been published as new research by Lloyds has revealed the average home costs six times the typical salary, the worst affordability in eight years.
