Chancellor John Healey will present his first Budget on Wednesday
More than £1bn for social and affordable housing in England will be provided in the Budget, taking funding for the government's 10-year homes programme past £40bn.
Mayors and regional leaders across England are also expected to get greater powers and funding in Wednesday's announcement - with councils helped to borrow money from the government to invest in housebuilding through preferential interest rates.
It is hoped the plans will give regional leaders more flexibility and authority over investment decisions.
Chancellor John Healey said English cities and regions would get the "right to decide their own future", while Prime Minister Andy Burnham said the plans were about shifting power to those "who know their communities best".