Deputy prime minister John Prescott is set to announce that he will accept the proposals made by bank of England economist Kate Barker in her report on housing. The Barker report recommends the construction of an extra 150,000 homes a year in order to meet demand and stall extreme price rises. The announcement comes on the back of chancellor Gordon Brown’s mortgage scheme to assist first time buyers onto the market. The plan would see buyers raising 50% to 75% of the cost with the remaining amount shared by the government and bank or building society. This would cut monthly payments on a £200,000 house by £372. Brown said: “It means that people who couldn’t afford the full price of a home can afford the partial price, and they can gradually ramp up their stake.”