Prime Minister Anthony Albanese has laid out the government’s $2 billion investment in social housing, explaining funds be distributed to states and territories on a strictly per capita basis.

NSW will receive the lion’s share of $610 million, Victoria will get $496m, Queensland $398m and Western Australia $209m.

South Australians will see $135m of the money, while Tasmania, the Northern Territory and the ACT will take minimum slices of $50m each.

The funds will be allocated over the next fortnight.

Thousands of new homes will be created for public housing tenants, with both new developments and upgrades of existing properties that are currently uninhabitable on the drawing board.

All of the money is to be committed by states and territories by June 30, 2025.

Prime Minister Anthony Albanese announced the Social Housing Accelerator at the Victorian Labor conference on Saturday.

He did not specify exactly how many homes would be created, saying that would depend on how governments chose to spend the money.

“State and territory governments have agreed that it will be in perpetuity, so we’re not going to have public housing built and then flogged off,” he told reporters.

He said premiers and chief ministers had agreed to amend some planning laws, reform zoning and free up more land for new builds.

NSW Premier Chris Minns welcomed the news of the additional housing funds, saying it was desperately needed.

“We’ve got a severe housing shortage in the state, both public, social and of course in the private market as well,” he told Sky News.

“We have to be making sure that this policy initiative, as well as many others, are pursued, because we can’t have a situation where more inbound immigrants that come into Australia’s largest state (are) putting more pressure on the housing market and the NSW government’s standing flat footed.”

The move comes as the Greens continue to block laws in the Senate to enable the government’s $10 billion Housing Australia Future Fund, calling for more ambitious spend and rent controls.

“Our government is not going to wait around while members of the Greens political party call for more housing in the media while opposing it in their electorates and voting against it in the parliament,” Mr Albanese told the conference.

However, Greens leader Adam Bandt claimed the government had caved in to his party’s demands on social housing and would negotiate over the entire $10 billion package in good faith.

The Property Council and Master Builders has welcomed the $2 billion boost as a positive step towards addressing affordability, with demand for social housing having increased almost three times as fast as the growth in population.

The Greens say a rent freeze is needed to tackle the rising cost of housing but state leaders have ruled out taking any action, arguing it would reduce the flow of supply and investment.

Instead they have committed to working with Mr Albanese on improving renters’ rights, delivering on a 20,000-dwelling national housing accord, and progressing a new national housing and homelessness plan.

At the Liberal federal council meeting on Saturday, Opposition Leader Peter Dutton recommitted to allowing first home buyers to access their superannuation for a house deposit.

-AAP