Housing Justice said the proposals, which include making sure each local authority has a plan to ensure enough land is available for building homes where people want to live, echo what it's been demanding for years.
Chief Executive Alison Gelder, told Premier's News Hour: "They've definitely diagnosed the problem and a lot of the things that they're saying in the white paper are things that we at Housing Justice have been saying for years actually.
"What I don't have is complete confidence that it'll actually make a difference."
Around 60 per cent of new homes in England are currently being built by just ten companies, however, a new £3 billion Home Building Fund will help encouraging small independent builders into the market.
The government's new housing plans:
- £3 billion fund for independent builders
- Fund will provide 25,000 new homes by 2020
- "Family friendly" tenancies of at least three years
- Local authorities must review housing plans every five years
- Developers must start building within two years of getting planning permission, instead of three
The government believes this will help to build more than 25,000 new homes during this Parliament and up to 225,000 in the longer term.
Housing Justice said plans to ensure renters desiring longer-term tenancies can secure contracts lasting at least three years does not go far enough.
Alison Gelder explained: "In Germany, for people in the private rented sector, their average tenancy is seven to twelve years, so that shows how far we've got to go."
Accepting the housing market is in a mess, the communities secretary Sajid Javid said: "It's just not working for so many people.
"I think it's the biggest barrier to social progress in Britain today. I accept people are right to be sceptical, they've heard it before.
"Successive governments now for over 30 years have let people down by not building enough home."
Click here to listen to Alison Gelder from Housing Justice speaking with Premier's Antony Bushfield: