A dedicated fund to buy second-hand homes is expected to be included in the government's new housing plan.
It's in a bid to tackle long-term homelessness, however it could result in the state competing with first time buyers for those homes.
The plan is due to be published later this week.
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The Sunday Times reports local authorities will be given financial incentives to meet their building targets.
There will also be new rules for approving social housing.
