People could take their first step on the property ladder by buying just 10% of a home under new plans announced by Communities Secretary Ruth Kelly.
Ms Kelly warned that a generation of people faced being left behind as a result of the rise in house prices over recent years.
In a speech to the Fabian Society, Ms Kelly said: "Many homeowners, and not just the very richest, have benefited from the growth in prices in recent years. The problem is, what happens to those who are unable to get a foot on the bottom of the property ladder?"
She continued: "They do not share in the wealth generated by rising prices. And they will find it harder to help their children benefit from ownership.
"We cannot be indifferent to the worrying prospect of a group being locked out of prosperity, of disadvantage passing down from generation to generation and throughout the community."
Ms Kelly said building more homes is "vital", but on its own was "simply not enough". She proposed lowering the minimum share tenants in social housing can buy under the Social Homebuy scheme from 25% to 10% to help the 1.7 million people who aspire to become owner-occupiers.
Ms Kelly said: "It's early days, and we will need to learn the lessons. But I see it as us dipping a toe in the water.
"We need to ask whether what we're offering is flexible and ambitious enough. For example, the minimum share a tenant can buy is 25%. Not everyone can afford this.
"Is there a case for offering the opportunity for people to start with a smaller stake - say, 10%?"
Under the proposals, tenants would be able to start off with a 10% stake and then increase the amount until they reach full ownership. Ms Kelly also set out plans to allocate more than £400 million to help improve housing conditions for the elderly, disabled and vulnerable.
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