The Government is injecting £60 million-a-year to help first-time buyers get a foot on the housing ladder in areas where locals are crowded out of the market by second home owners.
Housing Minister Gavin Barwell said the cash would be channeled through local councils to community-led groups providing affordable housing.
Around 150 local authority areas across England stand to benefit from the scheme with the largest slice of funding - almost £20 million - going to the South West, which has the highest level of second home ownership.
The South East will get £11 million, the East of England almost £9 million, Yorkshire and Humberside £6 million and the North West almost £6 million.
Smaller sums will go the East Midlands, which will get £2.7 million, London with £2.3 million, the West Midlands with £1.9 million and the North East with £1.3 million.
Mr Barwell said: "The high number of second homes can be a frustration for many who struggle to find an affordable home in their community.
"This new fund will help tackle that by boosting supply and make sure community groups are at the heart of delivering new homes so that this is a country that works for everyone."