Lewis, MP for Great Yarmouth, replaces Kris Hopkins who spent just 9 months in the role.
The housing portfolio has also been expanded to include planning with previous planning minister Nick Boles being promoted to minister responsible for both the Department for Education and the Department for Business, Innovation and Skills.
In the last reshuffle speculation was rife that the planning and housing portfolios could be merged and placed under Boles.
However, the role of housing minister was downgraded to a junior ministerial position with Hopkins replacing Mark Prisk.
But with the amalgamation of both briefs the role has now been reinstated as a full ministerial position. However, despite the new found prominence of the role the minister will not be attending cabinet.
Portsmouth North MP Penny Mordaunt, was also promoted in the reshuffle to under-secretary of state within the DCLG and will be a junior minister for planning working under Lewis.