Michael Gove has announced a £3bn increase in a government-backed loan fund aimed at helping registered providers to build thousands of new affordable homes.

The expansion of the government’s Affordable Homes Guarantee Scheme, which provides low-cost loans to housing providers, will support the delivery of 20,000 new homes.

This week, Gove is expected to announce an extension to the law allowing commercial buildings to be converted into homes without planning permission, to shops and offices of any size.