John Prescott has defended the government's policy on affordable housing.

In Commons exchanges during questions to the deputy prime minister, Conservative spokesman Caroline Spelman provoked an angry response from Prescott when she criticised the government's proposed £60,000 properties and branded the scheme as unworkable.

Prescott, however, maintained that a model £60,000 house was a "wow" at a recent sustainable communities conference and proved it was a feasible idea.

He confirmed the houses will now be developed by construction companies and "are a reality".

The deputy prime minister said his housing plans contrast "very well" with the Tory plans to reduce the number of houses being built in areas such as Kent.

When Labour MP Howard Stoate pushed the deputy prime minister on the need for houses for key workers in all areas, Prescott said the government had to maintain to its building programme as well improving opportunities for key workers to buy.

"With equity shares or separating construction price and the land prices like we are doing we are allowing key workers to have a mortgage price they can afford," he said.