John Prescott has announced plans to help key public sector workers onto the property ladder with loans of up to £50,000.

Calling for a greater "wow factor" in design he also said people "like good architecture".

However, on Tuesday the deputy prime minister was angered by press questions concerning his need for four homes.

Eric Pickles, shadow local government secretary, said: "With John Prescott we have two jags, four homes and one massive bill.

"After spending over a quarter of million pounds a year on running costs the big question is whether we are getting value for money? And the answer is no. With such a choice of homes you would have thought John Prescott might have done the decent thing by the taxpayer and lived somewhere cheaper.

"He is always saying there is a housing shortage. Now it has been revealed he is a major contributor to it."

Edward Davey, ODPM spokesman, said: "Extra investment in affordable housing for key workers and others is welcome, but there's a danger the government's scheme will back-fire.

"By boosting home demand in already overheated housing markets, ministers aren't helping to meet demand and could end up fuelling house price inflation.

"Extra cash would be best spent on bringing existing empty homes back into use, and into buying land for councils and housing associations to build more affordable housing."

Forum Response: Association of Teachers and Lecturers

Dr Mary Bousted, general secretary of the ATL, said: "ATL is delighted to support this innovative scheme. We have consistently argued that problems of teacher retention in London need to be addressed by a range of measures.

"We know that London teachers leave the capital in large numbers just at the point where they are ready to take on leadership and management responsibilities. This results in an over-reliance, in London, of newly-qualified teachers and employment-based training groups.

"This scheme, we hope, will be an important element in the drive to retain experienced teachers in the capital."

Forum Response: Professional Association of Teachers

A spokesman for the PAT said: "Many teachers and other public sector employees cannot afford to live in some areas of the country because of soaring house prices, causing a real problem for schools and nurseries in those areas trying to recruit and retain staff. Ultimately, children suffer because of these staff shortages.

"It is imperative that the government continues to explore how to help public sector employees to find affordable housing.

"We would like to see more creative ways of assisting teachers and other public service employees, for example by the provision of shared-equity mortgages. Such innovations are expedient to attract the quality education and childcare staff this country needs.

"One member told us that, after 25 years of teaching, the maximum mortgage she can obtain is £100,000, whilst the minimum cost of a one bedroom flat in her area is £150,000. She naturally feels highly aggrieved, and her situation is not unique."