The shortage of housing, particularly in London, is a controversial topic in the U.K., as is the prohibitive of cost of buying a first house.
On Wednesday, the chancellor said that he would double the housing budget to £2 billion a year and release public land suitable for 160,000 houses to be built.
In addition, Londoners will be able to get interest-free loans to help them buy newly built houses.
A new higher rate of "stamp duty"— a tax imposed when you buy property over a certain price in England, Wales and Northern Ireland — will be imposed for buy-to-let homes and second homes. This helps combat complaints that typically wealthier buyers are distorting the housing market, forcing up prices.
Michael Wistow, head of tax at Berwin Leighton Paisner, was unimpressed by the "stamp duty" move.
"To solve the housing crisis, the UK needs more houses to buy and more houses to rent.
"Increasing stamp duty on certain classes of investors in buy-to-let is distortive and appears counter-intuitive and will only restrict supply," he said in a statement emailed to CNBC after Osborne spoke.