Britain will invest an additional 3 billion pounds ($4.62 billion) in affordable housing in 2015, finance minister George Osborne said on Wednesday.

Rapid house price inflation over the past two decades has made it hard for young people to get on the housing ladder, and a lack of local authority homes has led to long waiting lists.

"We're committing over 3 billion pounds capital investment in affordable housing and we will extend the Troubled Families Programme to reach 400,000 more vulnerable families who need extra support," Osborne said.

Osborne was addressing parliament on his plans for a round of government spending cuts of 11.5 billion pounds in the 2015/16 fiscal year.

($1 = 0.6492 British pounds)

(Editing by William Schomberg)