Boris Johnson is to announce plans to extend the right to buy to millions of people who rent from housing associations.

He also wants to encourage the construction of more “flat-pack” homes to help ease the housing crisis.

In a speech next week, the prime minister will say that he wants 2.5 million people who rent housing association properties to have the chance to buy their homes at a discount.

Johnson hopes to draw on the legacy of Margaret Thatcher, whose scheme allowing families to buy homes from councils is seen as one of the Conservative Party’s most defining policies.

He is also understood to be attracted to the idea of building more modular homes. Ikea, the furniture manufacturing giant, has a housing construction spin-off

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