15,000-home garden city to be built at Ebbsfleet
16 March 2014 Last updated at 22:45 GMT
A garden city with an initial 15,000 homes will be built at Ebbsfleet in Kent, George Osborne has announced.
The chancellor told the BBC's Andrew Marr Show the site was chosen because there was "fantastic" infrastructure, and it was in south-east England where pressure on housing has been high.
He said local people wanted to see regeneration of the area.
Ross Hawkins reports.