Robin Fieth, chief executive of the Building Societies Association, said he applauded the government’s actions.
He said: “The availability of £1 billion in loans to unblock large housing developments is a welcome initiative, particularly when a lack of new housing stock in some parts of the country can be a major constraint on both first-time buyers and movers in finding the right property for them.
"Measures to tackle the cost of living and address the amount households spend on things like fuel and energy costs could also help to improve the affordability of mortgage repayments for first-time buyers, making it more comfortable to secure a foot on the property ladder.”
But Fieth also expressed his concerns about the continued period of low interest rates.
He said: "Hard-pressed savers will continue to feel the pinch during the lower-for-longer interest rate period.
“The Chancellor should listen to calls to improve this situation by making some simple changes to ISA rules to allow savers to use up their annual allowance in cash savings and to remove the block on transferring equity savings into cash products”