By Maeve Bannister and Andrew Brown in Canberra

AUSTRALIA’S housing target will be increased as part of a plan agreed to by state and territory leaders at national cabinet.

Prime Minister Anthony Albanese announced 1.2 million new homes would be built in the next five years, starting from July 2024.

The new target is an extra 200,000 homes than previously pledged as part of the national housing accord target.

The prime minister said $3 billion would be used for a fund for the states and territories to build the new homes.

Mr Albanese said the performance-based funding would be a genuine incentive.

“An additional 200,000 homes with $3 billion allows for an incentive of $15,000 per additional home, over and above the one million that had previously been agreed to,” he told reporters in Brisbane on Wednesday.

A $500 million housing support program would also be set up for local and state governments to start housing supply in well-located areas.

Leaders also agreed to a suite of rental reforms, which involved moving to limit rent increases to once per year and implementing minimum rental standards.

The reforms included developing a nationwide policy for a requirement for genuine reasonable grounds for evictions.

The Greens had opposed the federal government’s $10 billion Housing Australia Future Fund over a lack of support to renters, with the minor party calling for rent freezes.

But the prime minister said the Greens were standing in the way of new social and affordable housing.

“This is an initiative that shows how serious we are as state and territory governments across the political spectrum as well as the Commonwealth, understanding that supply is the key,” he said.

“You cannot say you support increased housing supply and vote against the Housing Australia Future Fund.”

The prime minister said moving towards nationally consistent laws on renting would make it easier for renters.

National cabinet also agreed to a new national planning reform blueprint, which would look at planning and zoning measures to increase housing supply.

As part of the blueprint, medium and high-density housing would be promoted in areas close to public transport, while approval pathways would be streamlined.