Hundreds of cheaper homes are to be built in the East and Yorkshire after four schemes were approved.
Many designs were put forward for the £60,000 homes
Deputy Prime Minister John Prescott has announced the schemes which include a proportion of homes built for £60,000.
The sites are at: Oxley Park, Milton Keynes; Upton, Northampton; Allerton Bywater, Leeds; and Renny Lodge, Newport Pagnell.
Builders Barratt Developments, G Wimpey and the SIXTYK Consortium were picked after a affordable homes competition.
Each project also includes some social housing in the development.
The government launched the scheme to find homes that could be built for £60,000, with the aim of providing more affordable homes.
Four pilot schemes
Oxley Park 145 homes
Upton 165 homes
Allerton Bywater Millennium Community 151 homes
Renny Lodge 68 homes
At Upton, the plan is for 165 homes to be built including 50 with a £60,000 price tag and 36 available as social housing.
Mr Prescott said: "People's sons and daughters are finding it increasingly difficult to get a foot on the housing ladder and we need to do all we can to make sure they are not denied the opportunity of a decent, affordable home of their own in future.
"The £60,000 home competition is breaking new ground, bringing down construction costs and using publicly-owned sites for development."
Sally Keeble, Northampton North MP, has welcomed the pilot scheme for the town.
"A lot of people come to me with housing problems," she said. "Many want to buy their own homes, but can't afford present day prices.
"This scheme will bring home ownership into the financial reach of more people and challenge other housebuilders to bring their prices down."