The Communities Plan envisages thousands of houses in the Southeast of England including Milton Keynes, Northampton, Ashford in Kent and the East Thames Gateway.
Announcing the plans, deputy prime minister John Prescott said young people were being priced out of areas in London and the Southeast.
But Jim Minton, marketing director of Centrepoint, said that the initiative could still fail to meet the need for affordable housing for young people on low incomes in central London.
"In London, there's a different set of problems and this won't address them," said Minton. "It's very expensive. We meet up to 1,000 new young people each year and it's a problem finding accommodation."
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