Ruth Kelly challenges housebuilders to learn lessons from the government's £60,000 home competition.

Ruth Kelly, the new secretary of state for communities and local government, has challenged the construction industry to produce more well-designed homes at affordable prices.

Speaking at an exhibition to showcase the winning designs in the high profile £60,000 house competition, Kelly said the Design for Manufacture Competition showed it was possible to build homes more cost-efficiently without sacrificing quality.

"The winning projects have really pushed back the boundaries, producing innovative designs that maximise space and minimise environmental impact,"she said. "The challenge now is to build on this and bring the lessons learnt from the competition in to the heart of housebuilding."

Over 300 homes will be built over 10 sites and will be sold on a shared equity basis for first time buyers. They will be built on former public sector land and a share in atwo-bedroom house will cost betweem £55-70,000.

The six developers showcasing their designs at the Building Centre in London are: